Help Musicians UK Annual Report and Financial Statements

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 MUSICIANS BENEVOLENT FUND (HELP MUSICIANS UK) CHAIRMAN Graham Sheffield CBE CHIEF EXECUTIVE OFFICER Richard Robinson Help Musicians UK is the working name of the Musicians Benevolent Fund, a registered charity (228089), a registered company (England 00252783) limited by guarantee and a Trust Corporation.

The registered office is 7 –11 Britannia Street London WC1X 9JS helpmusicians.org.uk

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CONTENTS CHAIRMAN’S MESSAGE 4 CHIEF EXECUTIVE’S MESSAGE 5 TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT 6

OBJECTS OF THE CHARITY 6

ANNUAL GENERAL MEETING 7

PUBLIC BENEFIT 7

A NEW STRATEGIC PLAN: AGENDA 2021 8 COMMUNICATIONS AND PARTNERSHIPS 10 HEALTH AND WELFARE 12 THE CREATIVE PROGRAMME 15 CAMPAIGNS AND COLLABORATIONS 19 FUNDRAISING 21 REGIONAL CLUSTERS 22 OPERATIONS 23 KEY MANAGEMENT PERSONNEL REMUNERATION 23 FINANCIAL REVIEW 24

SOCIAL INVESTMENT POLICY 26

GRANT MAKING POLICY 26

INVESTMENT POLICY AND PERFORMANCE 27

RESERVES 28

PRINCIPAL RISKS AND UNCERTAINTIES 29 STATEMENT OF TRUSTEES’ RESPONSIBILITIES 31 INDEPENDENT AUDITOR’S REPORT 32 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 35

BALANCE SHEET 36

CONSOLIDATED STATEMENT OF CASH FLOWS 37

NOTES TO THE CONSOLIDATED ACCOUNTS 38

COMPANY INFORMATION: BOARD AND TRUSTEES 55 COMPANY INFORMATION: PROFESSIONAL ADVISORS 55

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In 2016 the charity saw one of our biggest years of positive change and building of momentum in a generation. The Trustees and staff have not just overseen and implemented a year of enormous growth for our charity, but one which will provide firm foundations for the future, enabling us to play a pivotal and proactive role in the lives and careers of those in the music industry.

This year we saw the launch of a new strategic plan entitled Agenda 2021, which lays the groundwork for: new staff and teams, new campaigns, our first regional office in 95 years and a real commitment to utilising assets in changing musician’s lives.

Our Britannia Street offices have undergone a complete transformation. This change was started in December 2016 and completed in mid-January 2017 and was ably delivered through the hard work of our Operations Team.

We have also been pushing even further into new areas — hitting new targets and supporting the music industry in more ways than ever before — whilst retaining our core values in supporting the music industry within health and welfare and innovative professional development. This has included more investment in new opportunities for musicians to

CHAIRMAN’S MESSAGE develop the creative side of their careers as well as plans to provide even more means of support, advice, advocacy and guidance.

Our National Grants Programme received over 100 applications in 2016 and will see a doubling of support to regional and national music organisations across the whole of the UK. Phase two of our landmark mental health study and associated MAD (Music And Depression) campaign goes live in February 2017 and our partnership with the Music Venue Trust will see us supporting threatened venues.

We will announce more on international partnerships and an exciting new live music campaign; building on the huge successes of the musicians’ hearing and mental health campaigns in 2016. We will be further investing in our new Northern Ireland office and brand as well as launching Help Musicians Scotland in mid-2017. These activities will ensure we are reaching more musicians than ever before across the whole of the UK.

All of this, as well as a distinct and modern new brand, visionary capital projects and new fundraising initiatives which will see the exciting end to 2016 merge into an ambitious 2017. We will be focusing on expansion and growth, as well as continuing to engage with the charity’s supporters, volunteers and beneficiaries to help us meet the challenges musicians face and join with them in their successes.

At Help Musicians UK we remain proudly dedicated to supporting musicians at every stage of their career and beyond.

Graham Sheffield CBE Chairman

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CHIEF EXECUTIVE’S MESSAGE

Help Musicians UK is in the throes of significant change. Not only have we launched a new strategy for the next five years, Agenda 2021, but we are also looking at proactively investing our charitable assets to modernise and refresh our offering. This is vital as we head towards our centenary.

When I became CEO in September 2015, it was clear that Help Musicians UK was a charity steeped in history and incredibly well respected by the industry.

The golden thread of the organisation was, and remains, the life support it provides to musicians when they need it most. However, how can such a venerable organisation support an industry in the middle of a revolution?

Help Musicians UK wasn’t designed for the digital generation or DIY musicians.

With all this in mind, 2016 was our year of building bridges to the future of music, seeking new innovative directions and making the charity fit for the 21st century. I believe this is what Agenda 2021 achieves. The themes laid out in this strategic document are all designed to provide a gold standard service to musicians and the music industry – not just in health and welfare but also in professional development, creative programming, campaigning and advocating. It is a new start, but it builds on our past.

The global success of our mental health campaign, the launch of the first outreach office in Northern Ireland, the (almost) 2,000 musicians who have benefitted from our hearing scheme and the doubling of our National Grants Programme all add up to progression and impact. Something I know the charity will continue to spearhead into 2017 and as we catapult towards 2021.

We are the leading independent music charity in the UK. We receive no grants from government, the industry, from the Arts Councils or even the lottery and this puts us in a unique position to truly represent musicians and the industry. It’s a pivotal role, but we wholeheartedly accept the challenge and look forward to representing musicians and the industry better than ever before.

Richard Robinson Chief Executive

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TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT

INTRODUCTION Help Musicians UK (hereby referred to as the charity) is a company limited by guarantee (registered company number 00252783) and a charity registered in England and Wales (228089) and Scotland (SC012597) regulated by the charity commission. The charity is governed by a Board of Trustees, chaired by Graham Sheffield CBE, under powers defined in the Memorandum and Articles of Association.

The Trustees present the Trustees’ report incorporating the Strategic report as set out below.

OBJECTS OF THE CHARITY (a) to relieve poverty and financial hardship and to advance education among: (1) musicians; (2) those persons (not being members of the association) who work or have worked in professions or occupations closely connected with music and who in the opinion of the association have rendered valuable service to music; (3) the spouses, children and other dependants of those set out in (1) and (2) above; and (b) to advance musical education among musicians and also among members of the public.

STRUCTURE, GOVERNANCE AND MANAGEMENT OF THE CHARITY Help Musicians UK is comprised of: MEMBERS – there are 49 ‘shareholders’ liable for £1 each.

BOARD OF TRUSTEES – Trustees are elected from the membership. The Board defines the charity’s strategic direction and policies. Trustees ensure that the activities of the charity are in accordance with its Memorandum and Articles of Association. They are also aware of the need to be responsive to the changing work trends and circumstances of working musicians.

SUB-COMMITTEES – there are the following sub-committees: Finance and Audit Committee – undertakes review of budgeting, financial strategy and financial performance as well as audit, reporting and risk management.

Nominations Committee – undertakes the recruitment and appointment of Trustees and co-opted advisors in collaboration with the Chief Executive. The committee meets as and when necessary.

Remuneration Committee – convenes once a year to discuss and decide levels of staff remuneration.

The committees receive debate and decide policy recommendations from the Executive Team. The committees often co-opt specialist advisors who support the charity’s work.

During 2016, three advisory boards were also established. These are listed below: Creative Advisory Board Musicians Health Advisory Board Development Board These boards advise on and oversee the strategic direction and monitoring of programmes and related work stream activities.

TRUSTEE RECRUITMENT AND TRAINING In 2016 we undertook a search for new Trustees and in April 2016, after interviews, Trustees decided to appoint Carolyn Ward to the Board of Trustees. Additionally, Carolyn was asked to chair the Development Board. David Williams, a partner at Simmons and Simmons, also joined the Board in 2016 and brings significant legal experience to our governing body.

New Trustees have a full induction to provide them with the background to effectively oversee the charity as well as their duties as trustees and directors.

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ANNUAL GENERAL MEETING The 87th Annual General Meeting, since incorporation in 1930, will be held on Wednesday 27 April 2017 at 7-11 Britannia Street, London WC1X 9JS. In accordance with the Memorandum and Articles of Association, the following members of the Board of Trustees will voluntarily stand down from the Board.

Adrian Bradbury (Standing down in April 2017) Thomas Sharpe (Standing down in April 2017) Messrs haysmacintyre offer themselves for re-election as auditors to the charity in accordance with section 485 of the Companies Act 2006.

PUBLIC BENEFIT Trustees have given due regard to the provisions of the Charities Act 2011. Evidence shows that low income, unsocial hours, irregular employment, working away from home and continuous use of the body in repetitive activity can all take their toll on musicians. Whilst the creative satisfaction of being a musician or working in the music profession can be rewarding, this potent mix of vocational commitment and, in many instances, low pay and rewards, combined with vulnerability when things do not go to plan, are the reasons why Help Musicians UK exists.

The charity supports musicians with a mix of advice, guidance and financial support and is committed to the health and wellbeing of musicians and support performers from all backgrounds and genres across the UK. In accordance with the charitable objects and the intention of those who created Help Musicians UK in 1921, the charity supports musicians throughout their careers. This support encompasses three categories: 1.

2.

3.

Musicians at the point of entering the profession Musicians in their working lives who hit a serious crisis, illness or accident Musicians in retirement and in later life

In addition to performing musicians (which includes instrumentalists, singers and composers), the charity offers to support people who have worked in the wider music profession, for example, music managers, sound engineers/technicians and music librarians.

As well as the in-house programmes the charity runs to help musicians, there is also ongoing work with partner organisations that relates to the wellbeing and professional development of musicians.

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A NEW STRATEGIC PLAN: AGENDA 2021 Following extensive consultation with stakeholders, the charity arrived at a new strategy to cover the years 2016-2021. The strategy is entitled Agenda 2021.

VALUES To ensure we are a high performing organisation we will underpin our work with a strong values based culture, our values will be central to how we work externally and internally.

Agenda 2021 adopts a Vision, Mission, Values approach, as is common practice in the sector, before setting priorities and subsequent goals linked to achieving each priority. Details of all parts of Agenda 2021 are below.

The following values were arrived at following staff consultation:

VISION A world where music thrives.

MISSION Help Musicians UK provides help, support and opportunities to empower musicians at all stages of their lives.

Making a difference Positivity Passion Trust Collaboration

PRIORITIES AND GOALS PRIORITY

TRANSFORM

GOAL 1 To offer opportunities for musicians to develop their talent, skills and artistic experience throughout their career through a new Creative Programme.

2 To provide a transformative Health and Welfare offer that is integrated with external providers and acts as a one-stop shop for musicians needing help.

3 HMUK’s services will reach musicians working across all musical genres, with no one musical genre dominating investment by 2021.

REACH

4 Musicians based across the UK will benefit from HMUK’s work, without an imbalance towards musicians based in London and the South East by 2021.

5 HMUK’s work will be accessible to all musicians. The organisation will understand more about the demographic of the musicians it reaches and the demographic will be representative of wider society.

CAMPAIGN

6 HMUK’s campaigning activity will raise awareness and influence behaviours and national policies on fundamental issues affecting musicians, including Hearing and Mental Health.

7 HMUK will have created a coalition of likeminded organisations, where collectively innovation is supported and progressive services and opportunities for musicians are delivered.

INNOVATE

8 HMUK will have a system of data management that complements the work of partners and underpins its assessment of need, opportunity and innovation.

9 All HMUK programmes will be informed by, and tested with, musicians and industry professionals before being launched.

INVEST

10 Between 2016 - 2021 the charity will raise £21 million through fundraising, across multiple platforms to support musicians.

11 By April 2017 all staff, trustees and Advisory Board members will be equipped to act as ambassadors for the charity.

12 The values of the organisation will be reflected in the way it works internally and externally.

13 HMUK beneficiaries will find services easy to access and timely, and the costs of activity, and impact created will compare favourably when benchmarked with others.

COMMIT

14 HMUK’s internal processes and systems will be fit for purpose, scalable and effective.

15 All staff working at HMUK will be financially literate.

16 HMUK will be one of the leading employers in the not-for-profit sector.

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PLANS FOR 2017 In 2017, work will continue to define what success looks like in relation to the goals in Agenda 2021 and how we can convert the vision into a reality. We intend to develop ongoing organisational Key Performance Indicators (KPIs) as well as a complete measurement framework, with KPIs for the whole charity to measure our progress in achieving each goal listed opposite.

Measurement of KPIs will commence later in the year and will be reported, where appropriate, to the Finance and Audit Committee and subsequently the Board of Trustees on a quarterly basis.

The charity’s Annual Report and Accounts in 2015 made reference to Time to Evolve, the strategic plan that was written to last until the end of 2017.

Time to Evolve was replaced earlier in 2016 with a new five-year strategic plan entitled Agenda 2021. This new strategy is designed to take the charity into its centenary year and sets out an ambitious new set of goals to achieve in the five-year period it covers.

The goals that were outlined in Time to Evolve and referenced in the previous Annual Report have been replaced by the six priorities and 16 goals outlined in Agenda 2021.

Following the development of Agenda 2021, the charity created and appointed a new managerial position of Strategy and Impact Manager. This role is tasked to: produce and draw together measures that will help us understand the activity of the charity, develop a range of KPIs to monitor Agenda 2021 from 2017 onwards and enable focused planning for the future.

The performance measures that were used in 2016 are included in the strategic report under each team heading. A new set of measures for each team will be developed in 2017 as part of a new and more systematic way of reporting.

10 COMMUNICATIONS AND PARTNERSHIPS

COMMUNICATIONS AND PARTNERSHIPS COMMUNICATIONS 2016 was a transformational year for the Communications Team, following the appointment of the charity’s first Director of External Affairs and additional staff members to support the growing functions of this pivotal team. The busy year resulted in significant achievements, from the launch of a Northern Ireland brand to a rapidly growing social media following, to the additional task of a campaigning role for HMUK and the expansion of a digital suite of stories covering the musicians we support.

A more strategic and targeted approach to social media engagement has resulted in a large increase in online followers across the whole of the UK. Such growth underlines what a vital means of dialogue between musicians, supporters, press and the music industry social media has become. Significant traction was also found on social media following the launch of the #MADforHMUK campaign and the subsequent first phase results in November, seeing more spikes, engagement and interactions. This was, without doubt, the most successful communications strategy in the recent history of the charity, achieving global media interest.

Last year was also the biggest in terms of press coverage in the charity’s 95-year history. The use of external press agencies for high-profile events, including SongCycle and the launch of the first phase results of our mental health campaign, has seen the charity’s campaigns and stories extend across the country via television, radio, digital and print media. We have been on: all BBC platforms, Radio 1, 2, 3, 4, 5 live (twice, including a live interview) and 6 music, all regional BBC programmes plus an interview with our Director of External Affairs on BBC World Service and BBC World News. These examples highlight the role of communications as the backbone of the charity, utilising a growing press capability, putting the charity in the media, at the forefront of issues that affect musicians.

The charity’s branding review continues to move through important developmental stages, with regular engagements with ‘Appetite’, the branding consultancy leading the project. This work is set to transform the way the charity is perceived by both beneficiaries and the wider industry.

November saw the launch of the Help Musicians Northern Ireland (HMNI) brand, with a focus on broadening reach into the region through a range of innovative programmes, campaigns and initiatives.

This is the first outreach project in the charity’s 95 year history, but it won’t be the last. With this, came the creation of an entire new marketing suite of materials.

Standing banners, literature, flyers and fundraising materials were created for the launch and for future distribution, which have a space in our designated office at Belfast’s ‘Oh Yeah! Music Centre’. Adding to this collection was: our promotional earplugs that have been distributed across the country, literature relating to the mental health and music venues campaigns, flyers corresponding to Creative Programme opportunities and the Musicians’ Hearing Health Scheme.

Significant investment towards the development of digital assets has seen a new suite of videos created for various online platforms and beyond. As part of the charity’s ground-breaking partnerships with Kerrang! and Q Magazine, the creation of bespoke video clips demonstrated the breadth of the charity’s work. This also featured the voices of high-profile musicians including Debbie Harry, Chris Stein, Jack Garratt, Midge Ure and Ranking Roger. The topics of conversation included the continued need for a musician’s charity and discussion of our mental health campaign. Additionally, films were created and profiled during the Help Musicians Northern Ireland (HMNI) launch throughout Belfast, during Sir James Galway’s speech at the Festival of St Cecilia and a promotional video as part of the Emerging Artists Fund. All added significant value to the charity’s digital library. From an audio perspective, the charity has begun exploring a series of Professional Pathways Podcasts on the Soundcloud platform, with interviewing supported through the Creative Programme as part of a ‘Where Are They Now’ collection.

COMMUNICATIONS AND PARTNERSHIPS 11

PARTNERSHIPS The charity understands that as part of Agenda 2021, the engagement of partnerships and working with other organisations is vital in achieving strategic objectives.

2016 saw the number of partnerships increase dramatically, including: Kerrang! Awards, The Great Escape Festival, Independent Venue Week, Music Venue Trust, the Americana Awards, Gramophone Awards, Music Xpo, AIM Awards, London Jazz Festival, Atlantic Sessions, Q Awards and Gibson Guitars UK. This diverse mix highlights variety of musical genres, regions and stakeholders within the music industry.

The partnerships supported specific awards and provided the opportunity to play audience-specific videos to attendees, broadening awareness of the charity. One particular highlight was our first ever official involvement with The Great Escape festival in Brighton — the leading European festival for new music, and where the launch of our Mental Health campaign took place.

PLANS FOR 2017 In 2017, the Communications Team will focus on strengthening our branding position within the music industry and beyond. We aim to bring the charity’s brand ambition to fruition with continued investment into the brand redevelopment project. We intend for the charity’s name to become synonymous with helping musicians across all genres and all stages of their lives. Further to this, the introduction of a new suite of videos and images of those we help will add a dynamic visual value to the charity’s digital and print assets. Increased partnerships will ensure the charity has a presence across all areas of the music and health industries. These will be particularly important to helping achieve the objectives of Agenda 2021 and highlighting the importance of the charity’s campaigns as they impact directly on musicians.

With phenomenal press and media coverage achieved with the #MADforHMUK mental health campaign, 2017 brings exciting new developments. A survey that formed part of the campaign gave strong indications that working conditions in the music industry were contributing to musicians experiencing poor mental health. Although creating a new mental health service will help people who already have mental health conditions, prevention is better than cure, therefore the charity is planning to set up a new mental health taskforce to examine how the industry can improve working conditions.

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HEALTH AND WELFARE 2016 was an important year in shaping the impact we make in the lives of musicians in need. Historically, our work has focussed on providing financial grants in combination with a bespoke range of one-to-one help and advice. 2016 saw us undertake a major independent review of all our activities, resulting in a new roadmap to modernise and invest in our core support activities. The review looked at the work, systems and capabilities of our own team and those of our primary healthcare provider, the British Association for Performing Arts Medicine (BAPAM), mapping the needs of musicians against the current scope of service provision. In doing so, we have identified opportunities to enhance the scope and quality of the health and welfare services we fund, which will in turn ensure that our activities are aligned to deliver the goals contained in Agenda 2021. The review work completed in 2016 has resulted in a programme of activity that will help us redesign our services around musicians’ needs, identifying the most appropriate partners in health and welfare service provision, through 2017 and beyond.

2016 also saw us change the name of our directorate from ‘Help and Advice’ to ‘Health and Welfare’, reflecting the change in focus for the work we do and the link that social and financial issues have with health issues. This was combined with a change in executive leadership of the directorate, bringing in new skills and capabilities to help us plan and deliver our objectives, as we move from a ‘review phase’ into a ‘modernisation phase’.

ACTIVITIES We continued to experience high levels of requests for help in 2016, providing financial grants to a total of 1,1741 musicians in 2016, compared to 931 in 2015 (a 26% increase from 2015). Of these, 316 were from musicians making new applications for help from us, compared to 258 in 2015, reflecting a net 22% increase in requests for help.

In total we spent £1.9 million helping musicians through direct and indirect financial support during 2016, compared to £1.8 million in 2015. This increase in health and welfare spend equates to 8% more than in 2015, reflecting a growing demand from musicians for help, as well as our continued commitment to extend the reach and impact of our services.

This amount includes a payment of a £180,000 grant to the BAPAM and £111,120 in payments for musicians accessing our new Musicians Hearing Health Scheme.

In 2016 we supported 510 musicians categorised as having ‘immediate crisis needs’ compared to 405 in 2015, a significant increase of 26%. Typical examples of musicians classed as ‘in crisis’ are those experiencing significant financial hardship, potential homelessness, and unexpected and serious health issues. Regardless of the issue, our focus within crisis support is to help the musician through the crisis, using a combination of financial and emotional support and access to expertise and treatment services where possible.

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Numbers include the number of musicians supported via our Music Students Health Scheme but exclude the new Musicians Hearing Health Scheme for reporting purposes in 2016.

HEALTH AND WELFARE 13

In addition to supporting musicians in crisis, we also supported 553 musicians with longer term needs in 2016, categorised as requiring ‘quality of life’ or ‘continuing care’ support, a 5% increase on 2015 (2015: 526). These include musicians at varying stages of their careers, including retired and elderly musicians who are facing significant financial hardship, social isolation, as well as musicians experiencing long term health issues who are unable to work.

In addition to providing financial support and advice, the Health and Welfare Team operates a number of oneto-one visiting schemes to support musicians in their homes. In total, the Health and Welfare Team made 562 visits to musicians in 2016 across the UK. These visits provide an opportunity for us to ensure our personalised health and welfare support packages remain appropriate, as well as maintaining highly-valued social contact between the charity and those we support.

2016 saw a steadying of the numbers of musicians contacting us for support for musculoskeletal health problems, which impact their ability to work. However, this was in contrast to continuing growth in the numbers of musicians experiencing mental health related problems, ranging from depression or anxiety, through to a broad range of substance abuse and addiction issues. We saw applications relating to categories of musician-specific health needs such as ear, nose and throat difficulties (voice, hearing, etc.), as well as for a broad range of longer term health problems, such as degenerative illnesses, respiratory illness, cancer and general medical issues.

We offer a unique befriending service for predominantly retired musicians via our team of dedicated volunteer visitors. This support network provides valuable emotional and social support for those experiencing isolation and loneliness due to a variety of reasons (bereavement, illness, mobility issues etc.). We know from our work that social isolation and loneliness are particularly difficult issues for musicians who may have previously experienced significant social contact.

ADDITIONAL SERVICES August 2016 saw the launch of a new Help Musicians UK initiative, the ‘Musicians Hearing Health Scheme’ (MHHS).

The scheme is designed to increase awareness and prevention of hearing related issues within musicians’ workplaces and to provide the first preventative hearing health scheme for musicians. The initiative provides a specialist audiological hearing check for qualifying musicians, as well as provision of bespoke hearing protection at significantly subsidised rates. The scheme was established in conjunction with the Musicians Union and Musicians Hearing Services, creating the first national hearing service designed specifically for professional musicians.

By the end of the year, we had received applications from 1,734 musicians requesting access to the service, resulting in the charity funding over £111,120 of hearing tests and professional hearing protection for successful applicants. Feedback from the scheme has been incredibly positive and we intend to invest further during 2017 to ensure we continue to broaden the impact of this initiative.

We continued to operate the Music Students Healthcare Scheme in 2016. The scheme supports qualifying student musicians with up to £500 of financial assistance towards music related healthcare costs and access to a free healthcare assessment where required, via BAPAM’s network of clinicians. The ring-fenced grant of £500 is available for students to draw down throughout the duration of their studies.

PLANS FOR 2017 We head into 2017 with an ambitious set of plans to modernise our health and welfare service. Key initiatives will focus on updating our policy framework and services, reflecting the ambitions of Agenda 2021.

Part of this work will include examining and updating the services we commission from existing and new providers in priority areas such as musculoskeletal health, mental health and ear, nose and throat health, as well as general medical support relating to musician-specific issues.

Within this strand of service modernisation, we will continue to review our long standing relationship with BAPAM and have committed to extend our funding of the services we receive for an additional year.

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HEALTH AND WELFARE CONTINUED Based on the findings of our mental health research with the University of Westminster in 2016, we plan to establish the UK’s first dedicated mental health support line for musicians, as well as to continue with increasing the amount of support we provide for musicians experiencing addictions and mental health distress.

Following 2016’s review project, we recognise the importance of technology in delivering a fit-for-purpose service. In 2017 we will identify a new case-handling system that will help us deliver an increasingly complex set of activities, with improved efficiency and the provision of more effective service performance data.

and train more visitors and volunteers to tackle the social isolation many musicians experience, creating opportunities for musicians to meet and share their love of music.

In summary, 2017 is set to be a significant year in the charity’s history in terms of health and welfare service development and modernisation; ensuring the continuation of our core reason for being - to support musicians in need. We remain committed to finding new ways to increase the positive impact we can make in the lives of the musicians we serve.

Staff development has also been identified as a critical area for further development in 2017. To meet the growing demand of skills required by the Health and Welfare Team to deliver our services, we will be launching an ongoing development and training programme to ensure our team is empowered to respond as effectively as possible to the needs of the musicians we support.

Our visiting services will also be redeveloped to recruit

FINANCIAL GRANT PROVISION

2016

2015

Numbers of musicians who received financial grants

1,174

931

CASE MANAGEMENT ANALYSIS

2016

2015

New cases

316

258

Ongoing

858

673

ANALYSIS OF SUPPORT PROVIDED

2016

2015

Immediate crisis

510

405

Quality of life & Continuing care

553

526

Others

111

N/A

MHHS applications (NB. August to December)

1,734

N/A

MHHS % of musicians not previously known to charity

93%

N/A

SUPPORT & ASSESSMENT VISITS

2016

2015

Musicians visited in their own home (crisis visits, annual visits, and befriending service visits, made by staff and volunteers)

562

655

THE CREATIVE PROGRAMME 15

THE CREATIVE PROGRAMME ACHIEVEMENTS AND PERFORMANCE The Creative Programme, previously known as the Talent Programme, has driven forward Agenda 2021 in 2016, by providing support pathways and professional development opportunities for musicians across the UK — from age 18 through to retirement — through direct funding mechanisms and in partnership with music organisations. The Creative Programme delivered the charity’s vision through four key strands of focus: Learning, Professional Development, National Grants Programme, and HMUK Futures 15.0 — adding another two at the end of 2016: ‘Nations and Regions’ and ‘Space to Perform’.

In total, the Creative Programme made 177 awards to individual artists, totalling £336,000 and supported 17 music organisations, through a cumulative partnership investment of £166,000, to deliver both existing and pilot talent development initiatives across England.

LEARNING We continued to provide vital financial support to exceptionally talented young musicians undertaking postgraduate study within major conservatoires and music colleges — a core element of the Creative Programme. In 2016, 104 instrumentalists and singers across classical, jazz, opera, musical theatre and popular music courses received grants ranging from £1,000 to £5,000 to support their tuition and living costs.

To understand the impact of the charity’s investment in postgraduate training for musicians, we commissioned research by The Hub UK entitled ‘Where are they now?’ which looks at career progressions, barriers to success and the changing nature of musicians’ careers.

PROFESSIONAL DEVELOPMENT We ran three rounds of Career Development Bursaries — supporting emerging artists aged 21-35 — across a range of genres to access non-formal training opportunities, including mentoring, masterclasses and short courses of study. We provided 63 grants with 52% of grants awarded to female musicians.

In November, we were delighted to announce our continued partnership with PledgeMusic, relaunching the Emerging Artist Fund (EAF) 2016 which targets DIY artists who are at a tipping point in their careers but are without significant financial backing.

We maintained our partnership with Brownswood’s Future Bubblers, a 3-year talent discovery and development project in collaboration with Arts Council England, targeting young musicians in Hull and Sheffield aged 16-25 focused on experimental electronic and leftfield music.

19 year old pianist Fergus McCreadie, (a third year student at Royal Conservatoire of Scotland) became the youngest recipient of the Peter Whittingham Jazz Award, a £5,000 prize recognizing his exceptional talent and enabling him to fully fund an intensive period of writing and collaboration based in a remote rural Scottish location. A further £2,500 Peter Whittingham Development Award was granted to David Ferris, another accomplished jazz pianist.

16 THE CREATIVE PROGRAMME

THE CREATIVE PROGRAMME CONTINUED To enhance our offer for musicians who do not enter a music career through formal and higher education routes, we committed £30,000 to The Music Business School, a 13-week training course that provides a recognised qualification that fits around people’s careers. Our support funds 10 places over the next 18 months and transitions the school to a Community Interest Company, resulting in a more resilient and sustainable business model which can attract diverse income streams going forward.

NATIONAL GRANTS PROGRAMME In October we launched the National Grants Programme; revolutionising the way we support music organisations in the UK through an open and transparent application process.

The programme was well-received, with over 100 eligible applications.

The Creative Advisory Board assists the team in their decision-making processes, and announcements will be made in late February 2017.

In 2016 we honoured our existing commitments to 17 organisations working in England. Our support enabled musicians up and down the country to access a wide range of professional skills training, artistic development and performance opportunities, across: classical,

jazz, folk and contemporary popular genres. Through newly designed and robust processes, we will work much more closely with organisations to embed evaluation throughout their activity over the three years of funding. Furthermore all funded organisations will complete an annual data return, providing a stronger and consistent evidence base to demonstrate the impact of our funding.

We have also provided a further £55,000 business development support to two organisations, Royal Liverpool Philharmonic Orchestra and The Music Business School, to enable them to test innovative business planning and support them to become more sustainable organisations.

NATIONS AND REGIONS After committing to regional clusters in Agenda 2021, and supporting the launch of HMNI, the Creative Programme launched three pilot funding schemes in Northern Ireland. The schemes will address barriers faced by musicians in a complex funding landscape and challenging local music infrastructure.

NOTABLE SUCCESSES Critically acclaimed album, Punch – Elliot Galvin, United Vibrations receive International Showcase fund to attend WOMEX. Behn Quartet - Premiered Sir Peter Maxwell Davies’ final work at St John’s Smith Square, and the broadcast premiere live on BBC Radio 3.

Soraya Mafi joined the ENO Harewood Artists Programme.

Emerging Artists Fund 2015 recipients, The Lottery Winners, were signed to Warner Bros.

Records. Ryan Vail will play at SXSW festival 2017.

Sam Kelly of The Changing Room won Horizon Award at BBC Folk Awards.

Jack Sheen - RPS commission for performance at Presteigne Festival 2017.

THE CREATIVE PROGRAMME 17

PLANS FOR 2017 The Creative Programme will continue to grow in 2017, with ambitious plans to reach more musicians, represent a wider range of musical genres, and provide support for those who may not previously have been able to access our funding opportunities.

LEARNING Building on the ‘Where are They Now?’ research, in consultation with conservatories and music colleges, we continue to evolve the existing ‘Learning’ strand offer of postgraduate bursaries and awards, ensuring they are appropriate and impactful for musicians pursuing higher education music courses.

We will develop an offer at both undergraduate level and for those who do not follow formal education or training pathways. Consideration will be given to those taking a DIY route to a music career, ensuring that the support offered creates timely and impactful opportunities to develop skills and musical ability across all genres.

PROFESSIONAL DEVELOPMENT Ongoing evaluation of Career Development Bursaries will enable more musicians to benefit from this scheme. We will remove the upper age limit and reconsider the eligibility criteria and submissions process, allowing the charity to demonstrate commitment to enable musicians to sustain their careers at any age. We will also work closely with our Health and Welfare Team to align with their financial support to musicians who retrain later in life due to changing circumstances.

The EAF, operating over 3 rounds in 2017, will enable 24 selected artists (26% more than EAF15), to access ‘top-up’ funding to augment their successful PledgeMusic campaigns, and to receive expert advice from a range of industry peers throughout their projects. Additionally, we will host three showcases for successful artists in Belfast, Glasgow and London, providing an invaluable platform for these artists.

2017 will also see a period of significant research as we seek to establish a viable model for a National Mentoring Bank for the music sector by 2021.

NATIONAL GRANTS PROGRAMME The National Grants Programme will provide the Creative Programme, and the charity more broadly, with a portfolio of evidence to better demonstrate the impact of our funding – both for musicians and for the organisations themselves, and will be reported on an annual basis.

HMUK FUTURES 15.0 2017 will see considerable development of this strand.

Launching at The Great Escape festival in May, it will provide responsive and catalytic funding under three main ‘themes’: Music and Technology, Musical Leaders, and New Music Models. Under Musical Leaders, we will establish a Jazz Promoters Fellowship training programme, aimed at tacking issues of gender inequality in the sector, and through New Music Models we will support Royal Liverpool Philharmonic Orchestra’s research and testing of a holistic approach to managing a 21st century orchestra.

Over the next five years, the Creative Programme will ‘collect’ 150 pioneering musicians and industry leaders who exemplify best-practice and innovation under these three central themes.

18 THE CREATIVE PROGRAMME

THE CREATIVE PROGRAMME CONTINUED NATIONS AND REGIONS In 2017 the charity will continue its expansion across the United Kingdom with the Creative Programme focusing its resources on developing a range of funding opportunities bespoke for Scotland.

A cross-organisational project led by the Creative Director as Director of Help Musicians Scotland.

In 2017 the Creative Programme will deliver three pilot programmes in Northern Ireland as detailed below:

3:3 THREE BANDS IN THREE YEARS 3:3 will support the next generation of talented artists and the team around them. Working specifically with managers, producers or indie labels, this three-year commitment from 2017 will enable selected artists to access a fully-funded programme of support, guidance and artistic development. More broadly this fund aims to catalyse the infrastructure around bands in Northern Ireland, growing a more resilient sector and cementing the charity’s presence as an intelligent and responsive funder.

INTERNSHIPS Working in collaboration with CCSkills, the charity will help build the confidence and skills of young unemployed people in Northern Ireland who are interested in a career in the music industry. A grant per application of £2,500 is available through the Northern Ireland Creative Employment Scheme and the Creative Programme has committed to match this with a further grant of £2,000 for up to 10 internships throughout 2017.

CREATIVE COLLABORATORS To launch in 2017, this new scheme is open to musicians who want to work with other art forms or creative industries and will provide six grants annually to selected music-led collaboration projects.

SPACE TO PERFORM The Creative Programme will continue to develop in 2017 in close collaboration with both Health and Welfare and Communications and Partnerships, ensuring that all areas of the charity’s activity are aligned and focus on venues, festivals and touring opportunities for artists.

CAMPAIGNS AND COLLABORATIONS 19

CAMPAIGNS AND COLLABORATIONS Following the soft launch of the charity’s #HearForMusicians campaign in the third quarter of 2015, campaigning and lobbying activity began in earnest in 2016 with the appointment of an External Affairs Officer and the creation of an External Affairs Director position.

In May, the charity launched its MAD (Music And Depression) mental health campaign at The Great Escape festival in Brighton. The launch saw significant social media activity and led to coverage in both industry and national press including: The Independent, Noisey and Radio 1 Newsbeat. As part of the campaign, the charity commissioned the University of Westminster to undertake a study into mental wellbeing in the music industry. This study was the first of its kind. Phase 1 of the study included a survey of the working conditions for those in the music industry. With 2,211 responses by the survey’s close this makes it the largest of its kind in the world. Phase 1 and the survey results were released at the AIF (Association of Independent Festivals) Congress in November and led to the most significant press coverage the charity has ever received. Coverage included slots on; BBC Breakfast, BBC World Update, significant BBC radio coverage and inclusion in over 50 publications.

In August, during Health and Wellbeing Month, we launched a Musicians Hearing Health Scheme as part of our #HearForMusicians campaign. The scheme was promoted via events and social media. Over 1,300 musicians have signed up so far.

Below are some key statistics and information in relation to the achievements covered above:

increase from 2015 figures, bringing the number of followers to 16,800, with Facebook seeing a 68% increase with just over 4,100 fans.

• With added investment into the charity’s digital library, YouTube views have increased by 49.5% compared to 2015, totalling 5,195 views.

• BBC World News interviewed our Director of External Affairs for a five minute segment on mental health and musicians – the programme sees an average of 18 million viewers per day. The Chief Executive was also interviewed on BBC Breakfast as part of segment on mental health and musicians – the programme averages 6 million viewers per morning.

• We held our 70th Festival of St Cecilia service at Westminster Abbey, which saw over 1,400 guests attend and over £8,000 raised in donations on the day (Over £33,000 in total for the event). A reception afterwards featured donated prizes for a raffle, raising £1,400.

• The release of the first phase results from our mental health survey results saw a spike of activity in November with 4,885 page views on ‘musicanddepression.com’

AIM Indie Awards chose us as charity partner and we raised £2,000 on the evening of their awards ceremony.

•

• The charity’s website saw a 14.72% increase in page views compared to the same period in 2015, totalling 607,973.

The charity’s social media accounts have seen substantial increases in following, engagement and influence. Our number of Twitter followers saw a 21.7% •

• Overall, through new partnerships, the charity engaged with over 3,000 people from within the music industry.

20 CAMPAIGNS AND COLLABORATIONS

CAMPAIGNS AND COLLABORATIONS CONTINUED Throughout 2016, Help Musicians UK attended, partnered or ran over 35 events, achieving an engagement potential of over 30,000 people through attendees and events mailing networks.

An increase in reaching new advertising markets in 2015 was embarked on with great success. Alongside regular print publications in a diverse range of magazines, digital activity was explored in: M-Magazine, Music Week, London Jazz News and various others. ‘Click through’ rates were positive, driving traffic to our website.

Similarly, digital advertising was promoted at events including Liverpool International Music Festival and the AIM Awards, both of which the charity partnered with.

A range of branded marketing materials was produced to support current campaigns, including: flyers, literature reflecting new programmes (Creative Programme), a fundraising leaflet, and a suite of marketing materials for HMNI. This included postcards for the #HearForMusicians campaign and a postcard for the EAF with PledgeMusic.

These were placed in promotional bags at events, conferences and various venues across the country. In addition, ACS Custom design branded earplugs for our hearing campaign proved successful, popular and a conversation starter with musicians at events.

Following the launch of Help Musicians Northern Ireland, a suite of marketing materials was produced for the launch events and is permanently stored at our Northern Ireland office in Belfast. These include banners, information/literature flyers, tote bags, balloons, bunting, t-shirts and general giveaways. Additional marketing literature has been produced for the MAD campaign, the EAF 2016 as well as newly designed fundraising pledge cards. All of these have been distributed across the country.

PLANS FOR 2017 In 2017 the charity is planning to campaign for the protection of venues, with a particular focus on Northern Ireland, partially through partnership with the Music Venue Trust (MVT). This partnership was announced at Music Venues Day in October with the charity pledging to invest in MVT’s Sound and Vision infrastructure project as well as providing them with support to launch their services in Northern Ireland.

FUNDRAISING 21

FUNDRAISING 2016 saw a significant change to the charity’s fundraising function.

The Fundraising Team merged with the Communications Team to create the Communications and Partnerships Team. The new team serves the whole organisation to raise its profile and raise funds in tandem. The fundraising part of the team has increased its capacity to six staff members. Lead by the Fundraising and Development Manager, the team now includes a Fundraising Officer, a Senior Donor Development Officer, a Database and Marketing Officer, a Fundraising and Communications Assistant and a Volunteer and Engagement Officer. This structural change will allow the team to place a much greater focus on individual fundraising streams and work towards Agenda 2021’s goal of raising £21 million.

The charity has begun to work on and develop a number of new relationships across all areas of fundraising. We have our first major corporate partnership, with Marsh pledging to donate £20,000, and we are continuing to develop other partnerships across various corporate areas, including those within the music industry.

A number of corporate partners have also been very generous in donating items to the charity, either as free venues for events, or prizes for raffles which have helped in us beginning new potential relationships.

We have staged 22 community fundraising events, many from new supporters. These events took place throughout the year and have raised over £92,000.

One such event, entitled SongCycle that took place in August, saw a group of eight opera singers (many of whom were supported by the charity) cycle from Glasgow to London in eight days. SongCycle was the first event of this kind that we have run and the team raised over £25,000 whilst generating a large amount of press coverage for both the singers and the charity.

Also, regular supporters The Promenaders, who raise money through collecting donations at the proms each year, raised £46,000 in 2016.

Work with high net-worth individuals is underway. We re-engaged with some of our lapsed or dormant donors, and started work on plans and schemes to bring in new supporters and increase income from this area of fundraising which yielded over £27,000 in 2016. This figure includes work from our Senior Donor Development Officer, who secured a £10,000 donation from one of our lapsed donors. In October we held a cultivational event at the Oriental Club which had around 40 guests attending a special and private recital by two of the charity’s beneficiaries. The event saw a mix of donors and Oriental Club members attend. A number of new supporter relationships began following the event.

Our main fundraising event of the year, the Festival of St Cecilia, took place at Westminster Abbey in November and was well received by all those who attended. We had an increase in numbers of people attending, with over 1,400 guests.

A reception that followed the

festival for invited guests only drew around 120 attendees together for some private performances and a raffle. In a reverse from 2015, we actually received more income from donations made during the booking stage than during the service itself.

Income for this event was above £33,000.

Sales of Christmas cards and calendars did well and we were sold out of many of the designs. The final sales figures sat at just over £62,000 compared to £69,000 in 2015.

Legacy income continues to grow and income sits at just under £1.7 million, with around £1.9 million in the pipeline.

The Fundraising Team worked hard on creating and developing the HMNI #takeover day. We ran three events in three different locations, had collection tins in a number of local music shops and encouraged the general public to make donations and sign up to receive more information about the charity and get involved in volunteering opportunities.

PLANS FOR 2017 We will focus on developing a pipeline to increase the income we generate through trusts and foundations in 2017. We intend to work more with our database and focussing on running more targeted appeals throughout 2017 to increase income from general fundraising.

We will be looking at how our legacies are marketed and the work we need to do to continue to grow this area of fundraising over the course of 2017.

22 REGIONAL CLUSTERS

REGIONAL CLUSTERS The charity has relationships with organisations across the UK, mainly through the Creative Programme.

Agenda 2021 sets out an intention to establish regional clusters, with local organisations playing a key role. Regionally based organisations are well placed to increase the charity’s reach, and we can, in turn, play a part in supporting their ongoing growth and development. The intention is to bring together relevant local stakeholders to understand the needs of a community and create locally relevant action and evaluation plans, over an agreed time period. We intend to play a role in developing these partnerships, and investing in activities that can support the health, wellbeing and creative opportunities of musicians at that local level.

A stronger regional presence will contribute to the delivery of our fundraising ambitions. Clusters will enable us to recruit volunteers, developmental posts and roll out community fundraising and campaigning.

The locations will be established based on the following basic criteria: • The potential to establish activity that is both relevant to local needs and has the capacity to be a case study for others, or is scalable and could be delivered nationally.

• The level of activity taking place by relevant individuals and organisations in the geographical area.

The quality and range of relationships we hold with partners in these locations.

•

In the first instance we will undertake research through conversations with musicians and those working in the profession, data gathering and visits to current and potential regional partners and clusters to understand opportunities and challenges.

This regional cluster development has moved forward apace. Following the completion of Agenda 2021, the first cluster, HMNI was announced in the autumn of 2016. The launch of this first cluster included three new and location specific creative funding opportunities and a dedicated office for Northern Ireland. The launch took place in November 2016 and was followed by a range of activities that brought together local artists, music industry professionals and the wider community.

The charity’s Director of External Affairs is leading the new HMNI brand as Director of Northern Ireland. The Director of Northern Ireland is joined by a Northern Ireland Development Officer who is based in Belfast, and a local music producer/manager who will act as an industry liaison. The team will work to enable Help Musicians Northern Ireland to quickly react to the ever-changing needs of the industry and support local emerging talent.

PLANS FOR 2017 In 2017, the charity intends to launch the second pilot cluster in Scotland. Finer details of Help Musicians Scotland activities are yet to be established, however, in tandem with HMNI we expect the new cluster will develop new partnerships and, over time become sustainable through a long-term fundraising model.

We expect that funding will be tapered to achieve maximum impact on launch and then become a regular and predictable form of investment into the regional music infrastructure.

OPERATIONS 23

OPERATIONS The Finance and Operations Team supports all Help Musicians UK’s activities, helping the charity to meet its objectives. A significant role of the Finance and Operations Team is to monitor procurement, internal policies and audit to make sure all non-charitable expenditure is value for money and that the charity targets financial resources to its charitable objects.

OFFICE REFURBISHMENT The ground floor and first floor of our Britannia Street Offices underwent significant refurbishment this year.

We have changed the layout of the offices and meeting rooms to maximise meeting and seating spaces. In line with Agenda 2021’s modernisation objective, the new office layout can anticipate the increased staff numbers and provide potential for any further expansion of services.

Our meeting rooms have been installed with new audio-visual equipment to ensure smooth and easy access to video conference facilities. This will be ever more important as we collaborate with organisations across the UK and expand our activities in the regions.

Our listening panel sessions will also benefit from an improved sound system.

The regional office in Belfast’s ‘Oh Yeah! Centre’ is the main hub for HMNI and also where the Northern Ireland Development Officer is currently based.

HUMAN RESOURCES The charity underwent significant changes in 2016 that resulted in a new organisational structure to cater for the new activities in Agenda 2021. Our average number of employees increased from 23 in December 2015 to 30 in 2016.

INFORMATION TECHNOLOGY An independent review was commissioned to inform recommendations on an IT infrastructure that will support the future needs of the organisation, particularly, the Agenda 2021 five-year strategy.

The general conclusion is that the existing IT infrastructure will need improvements to support the current needs of the charity as it continues to grow and advance the services it offers to the music industry. The charity is increasingly moving towards an agile way of working, with enhanced use of technology, cloud based music services and remote working from a variety of locations including the setting up of remote offices.

The main strategy point is to migrate the existing infrastructure to cloud services to achieve the sophisticated technical platform and enhanced security controls that a cloud-based system can provide, a position which has previously been far beyond the financial reach of small charities such as us. This will ensure that the charity has a reliable, efficient, and supportable IT infrastructure for the future. Also, cloud computing provides a flexible and scalable IT environment with the ability to rapidly introduce new systems or to grow existing systems without costly and complex upgrades.

KEY MANAGEMENT PERSONNEL REMUNERATION The trustees consider the Board of Trustees, the Chief Executive and the Executive Team combined as the key management personnel of the charity in charge of directing and running the charity on a day-to-day basis. Trustees give their time freely. Details of Trustee expenses and related party transactions are disclosed in note 6 and note 15 to the accounts.

The pay of the Chief Executive, Executive Team and all other staff is reviewed annually and normally increased in accordance with average earnings to reflect a cost-of-living adjustment. The Trustees, through the Remuneration Committee, (which is responsible for fixing salary levels) benchmark against pay levels in other charities. The remuneration benchmark is the mid-point of the range paid for similar roles in similar charities.

24 FINANCIAL REVIEW

FINANCIAL REVIEW The Consolidated Statement of Financial Activities for the year brings together the assets and financial activities of the charity, including all its restricted funds as well as the separate trusts for which the charity is sole Trustee and the subsidiary trading company, MBF Trading Limited. Financial statements are prepared for these Trusts and the trading company.

The economic environment in the UK remains tough.

The fundraising environment continues to change with multiple charities competing for funds from the same source whilst, some of those charities invest heavily in their fundraising activities. Trustees are therefore pleased to report that our finances have improved over the past year.

Total incoming resources for the year were £5.5 million, compared with £4.8 million in the previous year. ‘Gift in Wills’ income of £2.7 million (£2.3 million in 2015) accounts for 49% of that total income.

In 2016, we continued to undertake a programme that increased services and grant-giving to the musicians we support. This resulted in charitable expenditure of £4.7 million (£4 million in 2015). We are continuously monitoring the changing requirements of music professionals and have increased our grant-giving to working musicians in crisis in 2016. For many years we have depended on Gifts in Wills as a significant, yet unpredictable source of income. We aim to continue to strengthen our fundraising capacity to enable us to diversify our income streams in the event of a decline in income derived from legacies.

Investment income of £2.2 million is an increase on the previous year (£1.9 million). Donations of £530,000 to the charity in the year are higher than that for 2015 (£409,000); this is partly due to the setting up of a fundraising team with a capacity of six staff members in 2016. Also, the Fundraising Team now works in tandem with the Communications Team to raise the profile of the charity and raise funds. This change is expected to enable the team to realise its fundraising target of £21 million, spread over five years in Agenda 2021.

Trading income, principally Christmas cards, through the subsidiary company, MBF Trading Limited, reduced to £73,000 (£84,000 in 2015).

Agenda 2021 is premised on increasing fundraising income over the life of the strategy to support the charity in delivering the goals outlined within it. This is especially important as we plan to extend our charitable services in future, through our programme of proactivity.

A fundraising consultant was engaged towards the end 2015 to review our fundraising activities and offer recommendations to enable informed decisions on a fundraising drive. This resulted in a fundraising strategy and setting up of a new team. The aim is to broaden our fundraising appeal and increase income from other revenue streams in order to ease the current dependence on Gifts in Wills income.

FINANCIAL REVIEW 25

As previously mentioned, the charity undertook a modernisation of the office building in Britannia Street to make it fit for purpose and accommodate more staff to help realise the plans set out in Agenda 2021.

Total expenditure incurred in 2016 was £5.6 million (£4.6 million in 2015) resulting in net expenditure of £46,000 (net income of £204,000 in 2015) before transfers and investment gains/losses. After accounting for investment gains of £7.4 million, there is a net income (surplus) of £7.3 million for the year.

Investment assets, mainly marketable securities, recorded a capital gain of £7.4 million; compared to, a loss the previous year of £367,000. The total reserves of the group increased to £71.6 million (£64.3 million in 2015). Details of specific designated and restricted funds are contained in the notes to the accounts.

26 FINANCIAL REVIEW

FINANCIAL REVIEW CONTINUED GRANT MAKING POLICY HEALTH AND WELFARE SOCIAL INVESTMENT POLICY We recognise that occasionally, it is in the interest of individual musicians that we support, to arrange a loan for a major piece of work, secured against for example, their property, that they could not otherwise obtain.

These are concessionary loans made to musicians and are secured on either their property or other fixed, tangible assets such as land.

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

We are here for musicians at any time during their working lives and beyond. We welcome musicians approaching us for help, advice and guidance. We always endeavour to offer support and where we cannot, wherever possible, we will signpost to other services.

Often, musicians make contact with us because they need help directly. We seek to help musicians in the way that is most relevant to them; in a flexible and holistic manner that takes into account all of their needs.

However, there are three key ways in which we are best able to help: FINANCIAL ASSISTANCE We help musicians in a wide variety of circumstances.

However, as a benevolent fund, the majority of musicians who approach us require financial assistance. Much of the detail of this grant making policy is concerned with how, when and to whom we provide financial support.

ADVICE AND SIGNPOSTING Advice and guidance may complement financial assistance. In some cases it is all that might be required.

For example, emergency financial assistance with debts is likely to be more effective in the long term if allied to debt counselling. We may offer advice directly or refer/ signpost to a specialist agency.

VISITING/SUPPORT/BEFRIENDING A visit to a musician’s home is an important and valued element of a response to a crisis. It is likely to take on even greater significance when we are supporting quality of life for older musicians. Past research has indicated that a significant minority of our older beneficiaries experience loneliness and isolation. Regular visits from staff or volunteers to review the musician’s needs, or solely for social reasons, is an important part of the support the charity offers to musicians of all ages.

FINANCIAL REVIEW 27

THE CREATIVE PROGRAMME The Creative Programme comprises a number of funding schemes that offer grants to individuals, groups and organisations. The overall Creative Programme strategy is guided by the goals of Agenda 2021, and overseen by the Creative Advisory Board. The Creative Advisory Board and Creative Director are responsible for ensuring that the strategic priorities and goals are measured and monitored effectively, and will also provide any impact and monitoring analysis to the Finance and Audit Committee when required.

Each strand of grant giving has a pre-agreed eligibility and assessment criteria which are made available to applicants and the assessing panellists, and published on our website at the relevant time. Minimum eligibility criteria are set in accordance with the charity’s Memorandum and Articles of Association, with additional criteria determined according to the specific needs being addressed by each respective scheme.

Each scheme has its own procedure for assessment and decision. Generally, either auditions are held in front of a specialist panel, or applications are assessed on the basis of a written proposal and/or an audio submission.

Independent advisors are used to bring expert judgement to bear on a majority of funding decisions.

Where grants are to be made from restricted funds or associated charities with specific restrictions, the terms of those restrictions are considered both at the point of determining the eligibility and assessment criteria (for schemes making grants from multiple funds) and at the point of decision. All terms and conditions are communicated to a grant recipient at the point an offer of funding is made. The Creative Programme will continue to embed rigorous monitoring and evaluation of its funded opportunities throughout the duration of any funding agreement with an individual or organisation, gathering evidence as to the impact upon musicians’ careers as well as enabling the charity to demonstrate it is achieving the priorities outlined in Agenda 2021.

INVESTMENT POLICY AND PERFORMANCE A review of Help Musicians UK’s Investment Policy, investment activity and our investment managers took place in 2016. Brewin Dolphin and Rathbones remain our two investment managers. Both managers follow a similar remit and are measured against benchmarks and income targets for the year with 50% of our investable money allocated to each.

In 2016 the investment portfolio yielded £2.2 million and exceeded the required income target of £1.9 million in the budget; representing an average income yield of 3.2% (2015: 3.4%). The overall performance of the portfolio in terms of total return was comparable to the benchmark; the total annual charge (TAC) for the portfolio averaged from both investment managers was 0.77% in 2016 (2015: 0.80%). Capital gains on the portfolio this year was £7.4 million compared to a loss in the previous year of £367,000. The performance of the investment portfolio is scrutinised by the Finance and Audit Committee.

28 FINANCIAL REVIEW

FINANCIAL REVIEW CONTINUED RESERVES Total group reserves as at 31 December 2016 were £71.6 million. This figure comprises: •

£54.2 million of general reserves

£2.7 million of designated funds (made up of net book value of buildings) •

• £4.7 million of designated funds for Agenda 2021 (see below)

£10 million of restricted funds that are held for specific purposes •

Details of restricted funds are in note 11 to the accounts. Of the general reserves available for use by Help Musicians UK, £56 million is tied up in investments.

Since inception, nearly one hundred years ago, the charity has done the utmost to build up an adequate financial cushion in order to support our commitments to the musicians we help. We regard our obligations to needy musicians and their dependents as paramount. Those obligations cannot be switched on or off depending on changes to the financial climate. The charity must maintain sufficient resources for all financial weather. It would be deeply damaging to the fulfilment of our charitable objectives and strategy if we stopped helping musicians because markets have turned against us or we are faced with unexpected shortfalls. Therefore, healthy reserves are needed to ensure our existing obligations are secure, whatever the state of the economy or variables such as money markets, interest rates, inflation or exchange rates.

In particular, welcome as they are, we cannot prudently rely upon ‘Gifts in Wills’ because, as time passes, annual gifts have fluctuated

and cannot be predicted with great accuracy. As such, the charity must maintain an absolute figure of £15 million in reserves to be sure of meeting existing obligations.

Reserves perform a further function, to ensure that the help we provide for emerging musicians can be maintained and expanded even in a volatile financial climate. That is, the charity maintains sufficient reserves to guarantee that it will remain a “going concern” notwithstanding the economic weather. At present, with low yields on investments, to sustain a stable net income of around £1 million a year in real terms requires investment assets of around £40 million. This figure is kept under review, but in the opinion of the Trustees this is the amount required to be confident of a secure long term future helping musicians. Naturally, the needs of musicians, including both financial and health needs will grow.

Therefore, further funds will always be needed.

During the year, the charity underwent a strategic review which looked at the continuing need of musicians and their dependents. On average, the charity has continued to award grants in excess of £2.3 million in recent years, and its current plans are for this to increase over the lifecycle of the strategy to over £4 million per annum by 2021.

Whilst the investment portfolio at £56 million of unrestricted funds may be considered significant, with current low yields on investment performance compared to earlier

years, a portfolio of £40 million is required to be maintained to generate an estimated annual income of circa £1 million.

Investment income alone is therefore insufficient to meet the ongoing needs of our beneficiaries.

We have been successful in generating additional fundraised income in the past, and been fortunate to benefit from in-year legacy income, but such income cannot be relied upon with any degree of certainty to fund our level of anticipated activity.

DESIGNATED FUNDS – AGENDA 2021 The Trustees, as part of their strategy have therefore agreed to draw down on unrestricted funds to prime a revised fundraising strategy to help grow sustainable and enduring income streams, increase our annual income and correspondingly increase support to beneficiaries. As a result, trustees decided to designate £5.2 million towards Agenda 2021 to fund the revised fundraising strategy and modernise the charity over the course of the next five years to generate the additional £21 million of fundraised income required to fully support the strategy. During the year, £545,000 was spent on Agenda 2021, leaving a balance of £4.7 million on the designated fund.

Please see note 12 in the accounts.

The Trustees conduct an annual review and subsequent approval of the charity’s reserves policy.

PRINICPAL RISKS AND UNCERTAINTIES 29

PRINCIPAL RISKS AND UNCERTAINTIES The preparation and management of the risk register is the responsibility of the Chief Executive and the Executive Team. The responsibility for oversight of risk management lies with the Finance and Audit Committee reporting to the Board of Trustees.

• Fundraising – in particular, our current reliance on legacies.

The risk register was reviewed and updated in late 2016.

The notable areas of strategic risk earmarked are:

• Strategic partners leading to reputational — the risk of adverse publicity can be very damaging in the charity sector, especially since the realisation of Agenda 2021 is heavily dependent on a large increase in fundraised revenue.

• Strategic financial (whether caused by fundraising, investments or imbalance between income and expenditure) – specifically a shortfall in available finance.

A summary of these three key risks and the approach to mitigation is in the table below. A copy of the full strategic and operational risk register is available on request.

30 PRINICPAL RISKS AND UNCERTAINITIES

STRATEGIC PRIORITY

RISK

MITIGATION

Financial – affects all priorities:

Strategic financial risk

•

Reserves policy reviewed annually for volatility.

Unable to manage the relationship between income and expenditure effectively year-on-year affecting our ability to deliver Agenda 2021.

•

Quarterly reforecast

•

Director of Finance and Operations will highlight to Executive Team and Trustees if a significant imbalance between income and expenditure appears likely.

TRANSFORM REACH CAMPAIGN

If income is below expenditure reserves, policy allows strategic commitments to be covered while forecasts are revised.

INNOVATE INVEST

If income is considerably in excess of expenditure in a single year there may be a short-term temptation to increase support to musicians we help.

COMMIT

• Trustees and Executive Team will agree policy for committing reserves to cover a shortfall in income

In the event that the Director of Finance and Operations believes the shortfall in income is likely to be an ongoing issue the following actions can be taken:

•

Rationalisation of grants to musicians we help ensuring essential grants are given to the most vulnerable and most- in-need musicians

•

Review all spending on beneficiaries to spread our resources fairly and to as many musicians as possible.

•

A disparity between money available to spend and strategic commitments could be precipitated by:

• Fundraising

• Investments

• Unavoidable external costs such as changes to

benefits/inflation

• Research reveals a significant constituency of

unsupported musicians.

Financial – affects:

Fundraising Risk

Work with Legacy Foresight, a legacies consultant.

INNOVATE

Legacies are not forthcoming.

INVEST

Risk of quantity of Gifts in Wills declining.

Work with the results from the latest Legacy Foresight Report on possible alternative strategies to increase pledges and notifications

COMMIT

Integrate a freelance Gifts in Wills specialist into the Fundraising team Legacy Foresight will report quarterly to the Executive Team, Finance and Audit committee and the Board, where necessary these reports will provide early warning if it is likely targets will be missed. If this is the case and the decline is irreversible: Director of External Affairs and the Fundraising Team will devise and attempt ways to drive new legacies Planning for the following years spending will be revised down.

Partners - affects all priorities:

Strategic partners risk - leading to financial and reputational risk

TRANSFORM

Strategic partners do not deliver against contractual obligations and therefore fail to deliver services of benefit to musicians.

Partner organisations are monitored a minimum of twice annually

This could apply to medical partners (E.g. BAPAM), strategic partners or recipients of National Grant Programme funding.

Grant offers are subject to an agreement of what will be delivered and a commitment to provide impact reports

As a result it is possible that musician’ medical needs might not be met or that monies paid by HMUK to partners are wasted in whole or in part.

Grants are only agreed upon for one year of funding and can be broken thereafter on an annual basis.

CAMPAIGN INNOVATE INVEST COMMIT

Offer letters include obligations to address specific priorities and acts as a contract between HMUK and partners

Grant payments are staggered in line with delivery targets or milestones.

31

STATEMENT OF TRUSTEES’ RESPONSIBILITIES Trustees, who are also directors of the Musicians Benevolent Fund (the legal name of Help Musicians UK) for the purposes of company law, are responsible for preparing the Trustees’ report (including the Group Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these 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;

• make judgments and accounting estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the charitable company’s constitution. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

So far as each of the Trustees is aware at the time the report is approved:

• there is no relevant audit information of which the company and the group’s auditors are unaware, and • the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

This Trustees Report incorporating the Strategic Report was approved and authorised for issue by the Board of Trustees on 23 March 2017 and signed on its behalf by:

Sandeep Dwesar Trustee

32 INDEPENDENT AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT We have audited the financial statements of Help Musicians UK, the working name of the Musicians Benevolent Fund for the year ended 31 December 2016 which comprises of the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR As explained more fully in the Trustees’ Responsibilities Statement set out on page 31, 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.

We have been appointed auditor under the Companies Act 2006. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate.

OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements: • give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2016 and of the group’s and the parent charitable company’s net movement in funds, including the group’s and the parent 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.

•

INDEPENDENT AUDITOR’S REPORT 33

OPINIONS ON OTHER MATTERS PRESCRIBED

BY THE COMPANIES ACT 2006 • The information given in the Trustees’ Annual Report, which incorporates the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and • The Trustees’ Annual Report, which incorporates the strategic report and the directors’ report has been prepared in accordance with applicable legal requirements.

In the light of our 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’ Annual Report (which incorporates the strategic report and the directors’ report).

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION 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: • the charitable company and group have not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or • the consolidated 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.

Bernie Watson (Senior statutory auditor) 26 Red Lion Square, London for and on behalf of haysmacintyre, WC1R 4AG Statutory Auditor 23 March 2017

haysmacintyre is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

34

35

MUSICIANS BENEVOLENT FUND CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME & EXPENDITURE ACCOUNT) YEAR ENDED 31ST DECEMBER 2016

UNRESTRICTED FUNDS £’000

RESTRICTED FUNDS £’000

2016 TOTAL FUNDS £’000

2015 TOTAL FUNDS £’000

3,203 123 1,795

17 366

3,220 123 2,161

2,736 1 134 1,910

5,121

383

5,504

4,781

849 4,040

47 614

896 4,654

621 3,956

4,889

661

5,550

4,577

232

(278)

(46)

204

Net gains/(losses) on investments

6,148

1,217

7,365

(367)

Net movement in funds

6,380

939

7,319

(163)

55,227

9,025

64,252

64,415

61,607

9,964

71,571

64,252

NOTES

INCOME FROM: Donations and Legacies Charitable Activities Other Trading Activities Investments TOTAL INCOME

2

EXPENDITURE ON: Raising Funds Charitable Activities TOTAL EXPENDITURE

3

Net (expenditure)/income and net movement in funds before gains and losses on investments

Reconciliation of Funds Total Funds balance brought forward TOTAL FUNDS CARRIED FORWARD

13

All transactions are derived from continuing activities.

All recognised gains and losses are included in the Statement of Financial Activities.

The comparative Statement of Financial Activities is in note 17.

The notes on pages 38 - 54 form part of these financial statements.

36

MUSICIANS BENEVOLENT FUND BALANCE SHEET AS AT 31ST DECEMBER 2016

COMPANY NUMBER: 00252783

NOTES

FIXED ASSETS Tangible assets Investments Social Investments

CURRENT ASSETS Stock Debtors: due within one year Cash at bank and in hand

2015 £’000

2016 £’000

2015 £’000

2,676 66,743 126

2,511 59,517 298

2,676 61,302 126

2,511 54,670 298

69,545

62,326

64,104

57,479

3 1,984 914

4 1,027 1,335

2,041 797

1,075 1,248

2,901

2,366

2,838

2,323

(827)

(412)

(1,220)

(728)

2,074

1,954

1,618

1,595

71,619

64,280

65,722

59,074

(48)

(28)

(48)

(28)

71,571

64,252

65,674

59,046

11

9,964

9,025

4,067

3,819

12 12

7,331 54,276

2,511 52,716

7,331 54,276

2,511 52,716

61,607

55,227

61,607

55,227

71,571

64,252

65,674

59,046

7 8a 8b

9

10

NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES Creditors: amounts falling due after more than one year

10

TOTAL NET ASSETS TOTAL FUNDS Restricted funds Unrestricted funds: Designated funds General funds

CHARITY

2016 £’000

Total Current Assets LIABILITIES Creditors: amounts falling due within one year

GROUP

Total unrestricted funds 13

The charity’s own Statement of Financial Activities has not been presented, as permitted by section 408 of the Companies Act 2006.

The charity’s net movement in funds for the year as an individual entity was £6,628,000.

The notes on pages 38 - 54 form part of these financial statements. The financial statements were approved and authorised for issue by the Board of Trustees on 23 March 2017 and were signed below on its behalf by:

Graham Sheffield CBE Chairman

Sandeep Dwesar Honorary Treasurer

37

MUSICIANS BENEVOLENT FUND YEAR ENDED 31ST DECEMBER 2016 CONSOLIDATED STATEMENT OF CASH FLOWS: 2016 £’000

2015 £’000

(4,180)

(920)

2,161 (296) 14,408 (12,686) 172

1,910 (28) 14,670 (16,362) 6

3,759

196

Change in cash and cash equivalents in the year

(421)

(724)

Cash and cash equivalents brought forward

1,335

2,059

914

1,335

2016 £’000

2015 £’000

Net movement in funds Add back depreciation Interest and dividends Movement on investments (Increase)/decrease in debtors Increase in creditors Decrease /(Increase) in stock

7,319 131 (2,161) (8,948) (957) 435 1

(163) 121 (1,910) 295 647 92 (2)

Net cash provided by (used) in operating activities

(4,180)

(920)

Cash and short term bank deposits

2016 £’000 1,335

2015 £’000 914

Total cash and cash equivalents

1,335

914

NET CASH PROVIDED BY (USED) IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Interest & Dividends Purchase of Equipment Proceeds from sale of investments Purchases of investments Movements on programmed related investments

Cash and cash equivalents at the end of the year

RECONCILIATION OF NET (EXPENDITURE) INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES:

ANALYSIS OF CASH AND CASH EQUIVALENTS

38

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS YEAR ENDED 31ST DECEMBER 2016

CHARITY STATUS

GOING CONCERN

The charity is a company limited by guarantee, a registered charity (228089) in England and Wales and a registered company (England 00252783) and located at 7 -11 Britannia Street, London, WC1X 9JS. The members of the company include the Trustees named on page 55. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

The Trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern.

With respect to the next reporting period, 2017, the most significant areas of uncertainty that affect the carrying assets held by the charity are the level of investment return and the performance of the investments markets (see the investment policy and the risk management sections of the Trustees’ annual report for more information). The charity is exposed to underperformance in legacy income, which accounts for almost 50% of our annual income. The charity’s aim is to broaden our income sources to reduce reliance on legacies and the charity works with various professional organisations such as Legacy Foresight to monitor, predict and stimulate legacy giving. The review of our financial position, reserves levels and future plans gives Trustees confidence that guarantee the charity remains a going concern notwithstanding the economic weather.

1. ACCOUNTING POLICIES The principle accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

STATEMENT OF COMPLIANCY The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP FRS 102), and the Companies Act 2006.

BASIS OF PREPARATION The financial statements have been prepared under the Companies Act 2006 on the historical cost convention as modified by the valuation of fixed asset investment at fair value, which is consistent with the prior year. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Group financial statements have been prepared in respect of Help Musicians UK (working name of the Musicians Benevolent Fund) and its wholly owned trading subsidiary, MBF Trading Limited, together with trusts where the charity is sole Trustee.

In accordance with the Companies Act 2006 and SORP 2015, no separate Statement of Financial Activities is presented for Help Musicians UK. The Charity’s own statement of Financial Activities has not been presented, as permitted by section 408 of the Companies Act 2006. The Charity’s net movement in funds for the year as an individual entity was £6,628,000.

Help Musicians UK meets the definition of a public benefit entity under FRS 102.

FUND ACCOUNTING The different funds are defined as follows: Restricted funds (Note 11) are those funds which are to be used in accordance with specific instructions imposed by the donor or trust deed.

Unrestricted funds are those funds available to the charity for its general purposes. They include funds designated (Note 12) by the Trustees for particular purposes where their use remains at the discretion of the Trustees. It is the policy of the Trustees to retain in unrestricted funds, amounts which in their judgement, can help to mitigate the short term effects of income volatility; provide for long term commitments to the musicians we help; and retain as long term investment funds to generate sufficient income to meet current and future operational activities of the charity.

Further information is available in the reserves section of the Trustees’ report.

39

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

Expenditure is recognised on an accruals basis as a liability is incurred, inclusive of VAT, which cannot be recovered.

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

Donations and legacies income includes donations and gifts in wills which are recognised where there is entitlement, probability of receipt and the amount of the gift is measurable.

Income from charitable activities is recognised as earned as the related services are provided. Income from other trading activities is recognised as earned as the related goods are provided. Investment income is recognised on a receivable basis and the amounts can be measured reliably. Dividends are recognised once the dividend has been declared and notification has been received the dividends are due.

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

Expenditure on raising funds include direct costs and where appropriate an allocation of support costs. Trading expenses are incurred in the production, marketing and sale of mugs and charity Christmas cards. Fundraising and publicity costs include a portion of advertising, direct costs of legacy administration and Friends’ membership scheme, and other promotional activities. Remaining costs relate to direct costs of maintaining rental property, and an allocation of support costs to the management of marketable investments.

Charitable activities comprise mainly of grants given to individuals and organisations. These activities directly represent the costs of the Health & Welfare team and the Creative Programme team which relates to grant giving and other direct services to musicians. In all cases, the total cost includes grant funding where relevant, direct activity and an allocation of support costs on a pro rata basis using staff head counts to reflect usage.

Grants payable are payments made to third parties. Single or multi-year grants are accounted for when the Trustees have agreed to pay the grant without condition.

Support costs have been allocated between governance costs and other support costs. Governance activities comprise organisational administration and compliance with constitutional and statutory requirements. Costs include direct costs of external audit, legal fees and other professional advice including legal fees relating to certain smaller trusts.

Governance and support costs have been apportioned between all activities based on staff head counts and usage by activity. The allocation of support and governance costs is analysed in note 3(c).

40

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016

TANGIBLE FIXED ASSETS AND DEPRECIATION Fixed assets are stated at cost or deemed cost (donated valuation at estimated fair value) less accumulated depreciation and impairment losses. Assets costing more than £1,500 are capitalised. Depreciation is calculated to write off the costs of the fixed asset by equal instalments as follows, all straight line.

The charitable company previously adopted a policy of revaluing its land and buildings and were stated at their revalued amount less any subsequent depreciation and accumulated impairment losses. The Charitable Company has adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use the previous valuation as its deemed cost.

Land is not depreciated. Depreciation on other assets is calculated on a straight line basis to allocate the charge to their residual values over the estimated useful lives as follows: Freehold property over 50 years following acquisition Other building this is a functional asset with a beneficiary as a life tenant and is therefore not depreciated Fixtures and fittings over 4–10 years for the full year from when asset is brought into use Computer equipment over 4 years for the full year from when asset is brought into use No depreciation is charged on assets in construction

INVESTMENTS Investments are a form of basic financial instruments and are initially shown in the financial statements at market value.

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

Profits and losses on the realisation of investments are shown as realised gains and losses in the Statement of Financial Activities.

Realised gains and losses on investments are calculated between sales proceeds and their opening carrying values or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

SOCIAL INVESTMENTS - PROGRAMME RELATED INVESTMENTS These are concessionary loans made to beneficiaries and are all secured on either their property or other assets such as land. Loans are repayable in more than one year. The loans are recognised and measured at the amount received or paid, with the carrying amount adjusted in subsequent years to reflect repayments and any accrued interest. The loans were made on the premise that we would not be aiming to achieve a financial return and were made wholly to advance our charitable purposes for the benefit of our beneficiaries.

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

EMPLOYEE BENEFITS Short term benefits Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Employee termination benefits Termination benefits are accounted for on an accrual basis and in line with FRS 102.

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

41

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION OF UNCERTAINTY

VAT In common with many other charities, Help Musicians UK is not registered for VAT and the charity’s expenses are inflated by some VAT, which cannot be recovered. The charity’s subsidiary MBF Trading Limited is registered for VAT.

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

FINANCIAL INSTRUMENTS The trust 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.

CASH AT HAND AND IN BANK Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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

In the application of the accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

KEY AREAS SUBJECT TO JUDGEMENT AND ESTIMATION ARE AS FOLLOWS; Accruing for income derived from legacies where complicated issues surrounding the measurement of the group’s entitlement to income existed at the year end.

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

42

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 2. ANALYSIS OF GROUP INCOME UNRESTRICTED FUNDS £’000

NOTE 11 RESTRICTED FUNDS £’000

TOTAL 2016 £’000

TOTAL 2015 £’000

2,690 509 4

17 -

2,690 526 4

2,327 409 -

-

-

-

1

OTHER TRADING ACTIVITIES: Trading income Events Lettings

73 50

-

73 50

84 50

INVESTMENT INCOME Investment income (see below)

1,795

366

2,161

1,910

TOTAL INCOME

5,121

383

5,504

4,781

INCOME AND ENDOWMENTS FROM: DONATIONS AND LEGACIES Legacies Donations Donations of professional services CHARITABLE ACTIVITIES: Fees, subscriptions and other sales

Investment income includes dividends of £2,159k (2015: £1,908k) and bank interest of £2k (2015 £2k).

43

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 3(a). GRANTS PAYABLE TO PARTNERS

GRANTS TO PARTNERS WERE: Aldeburgh Music

2016 £

2015 £

6,000

6,000

British Association of Performing Arts Medicine (BAPAM)

180,000

180,000

Hallé Orchestra

20,000

20,000

Live Music Now

25,000

25,000

Manchester Midday Concerts Society

5,000

5,000

Park Lane Group

5,000

5,000

Young Classical Artists Trust

5,000

12,000

Sound and Music

10,000

10,000

London Symphony Orchestra - String Experience Academy

7,000

7,000

London Symphony Orchestra - LSO Academy 2016

13,000

13,000

National Youth Jazz Orchestra

5,000

5,000

Royal Liverpool Philharmonic

25,000

-

Music Business School

30,000

-

Cheltenham International Music Festival

5,000

5,000

Chamber Studio

5,000

5,000

British Youth Opera

-

10,000

National Youth Wind Orchestra (John Fletcher Bursary)

-

720

National Youth Brass Band of Great Britain (John Fletcher Bursary)

-

210

Milapfest

-

7,500

National Children’s Orchestra of Great Britain (John Fletcher Bursary)

-

300

National Opera Studio

-

10,000

Serious

-

10,000

London Philharmonic Orchestra

-

7,500

London Sinfonietta

-

8,500

Chineke Foundation

-

5,000

Southbank Sinfonia

-

7,000

St Magnus Festival

-

4,000

TOTAL

346,000

368,730

44

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 3(b). ANALYSIS OF GROUP TOTAL RESOURCES EXPENDED DIRECT STAFF COSTS £’000

DIRECT OTHER COSTS £’000

GRANT FUNDING £’000

133 -

60 237 1 248

-

133

546

252 146

OTHER GOVERNANCE (SUPPORT) SUPPORT COSTS COSTS £’000 £’000

2016 TOTAL £’000

2015 TOTAL £’000

104 80 -

2 16 6 9

62 490 87 257

62 237 79 243

-

184

33

896

621

133 53

1,715 391

519 247

45 22

2,664 859

2,396 715

37 156

13 266

346 68 -

62 2 150

5 2 24

463 72 596

451 23 371

Sub total

591

465

2,520

980

98

4,654

3,956

TOTAL

724

1,011

2,520

1,164

131

5,550

4,577

RESOURCES PREMISES/ GOVERNANCE / IT OVERHEAD COSTS £’000 £’000 £’000

2016 TOTAL £’000

2015 TOTAL £’000

RAISING FUNDS: Trading expenses Fundraising Investment / property costs Investment management

CHARITABLE ACTIVITIES Grants to individuals: - Crisis / continuing care - Future professionals Grants to organisations: - Partnerships - Associated trusts Raising awareness:

3(c). ANALYSIS OF GROUP SUPPORT COSTS MANAGEMENT COSTS £’000

FINANCE £’000

RAISING FUNDS: Trading expense Fundraising Investment / property cost

14 7

34 45

34 28

22 -

2 16 15

2 120 95

2 73 89

TOTAL COSTS OF RAISING FUNDS

21

79

62

22

33

217

164

32 26

125 50

216 87

146 84

45 22

564 269

501 211

6 67

13 33

22 2 41

21 9

5 2 24

67 4 174

53 23 137

131

221

368

260

98

1,078

925

152

300

430

282

131

1,295

1,089

CHARITABLE ACTIVITIES Grants to individuals: Crisis / Continuing care Future professionals Grants to organisations: Partnerships Associated trusts Raising awareness: Sub total TOTAL COSTS OF CHARITABLE ACTIVITIES

45

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 3(c)(i). GOVERNANCE COSTS INCLUDE General Office, VAT etc.

Salaries, wages and associated costs External Audit Fee Communications, meeting and AGM Legal and other professional fees

2016 TOTAL £’000

2015 TOTAL £’000

39 29 20 26 17

31 34 18 21 8

131

112

GROUP & CHARITY

4. STAFF COSTS Salaries & Wages National Insurance Pension Scheme Private Medical Insurance Related expenses Agency staff Self-employed fees

2016 £’000

2015 £’000

972 89 111 3 85 91 14

750 63 97 3 58 91 1

1,365

1,063

In addition, during the year, one staff member was made redundant with the costs analysed in the table below: GROUP & CHARITY 2016 2015 £’000 £’000 Redundancy payments Pension Scheme

30 6

91 25

36

116

2016 NUMBER

2015 NUMBER

1

2 2

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

£60,001 - £70,000 £70,001 - £80,000

The employee earning more than £60,000 participated in the defined contribution pension scheme; contributions of £8,000 were made during the year for this employee by the charity (2015: £49,090 for four employees).

The key management personnel of the charity are the Chief Executive and the Executive team; aggregate remuneration and benefits for the key management personnel in 2016 was £361,299 compared to £240,189 in 2015.

46

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 2016 NUMBER

2015 NUMBER

Health & Welfare Creative Programme Communications & Partnership Secretariat & Operations Finance

5 5 11 5 4

5 4 7 3 4

Total

30

23

2016 £’000

2015 £’000

17 6 24 131 117

16 121 122

The average number (head count) of employees analysed by function were:

5. NET INCOME/EXPENDITURE FOR THE YEAR AFTER CHARGING: Auditors’ remuneration - audit work (Group only) - excluding VAT Auditors’ remuneration - other services - excluding VAT Auditors’ remuneration - other services - excluding VAT Depreciation - own assets Pension costs (including redundancy costs)

6. BOARD OF TRUSTEES’ EMOLUMENTS & REIMBURSED EXPENSES None of the members of the Board of Trustees received remuneration during the year. In 2015, £840 was paid to one Trustee - Reverend Ronald Corp, who has a long career in music and has chaired many auditions panels. The governing document of the charity does allow this payment which was ratified at a Board of Trustees meeting.

During 2016 expenses with a total of £433 (2015: £673) were reimbursed to three members of the Board of Trustees (2015: three). These payments relate mainly to travel costs. No amounts were paid directly to third parties (2015: NIL)

7. TANGIBLE FIXED ASSETS - GROUP AND CHARITY FREEHOLD & OTHER BUILDINGS £’000

FIXTURES & FITTINGS £’000

WORK IN PROGRESS £’000

COMPUTER EQUIPMENT £’000

2016 TOTAL £’000

GROUP COST Balances as at 31st December 2015 Additions Transfers Revaluations

2,380 -

619 33 -

249 -

382 14 -

3,381 296 -

BALANCE AS AT 31ST DECEMBER 2016

2,380

652

249

396

3,677

ACCUMULATED DEPRECIATION Balance at 31st December 2015 Charge for year Revaluations

49 49 -

477 54 -

-

344 28 -

870 131 -

BALANCE AS AT 31ST DECEMBER 2016

98

531

-

372

1,001

NET BOOK VALUE Carried forward 31st December

2,282

121

249

24

2,676

Brought forward at 1st January

2,331

142

-

38

2,511

Work in Progress relates to the refurbishment works on the Britannia office building.

47

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 8(a). INVESTMENTS GROUP 2016 £’000 LISTED AND UNLISTED INVESTMENTS Market value as at 1st January Less: Proceeds on disposals Transfer to Fixed Assets Add: Acquisitions at cost Unrealised gains Realised gains

59,445 (14,408)

2015 £’000

CHARITY 2016 £’000

2015 £’000

54,602 (13,214)

12,686 6,351 1,014

58,220 (14,670) (100) 16,362 (509) 142

11,644 5,832 918

53,490 (13,463) (100) 15,011 (466) 130

65,088

59,445

59,782

54,602

Cash as at 31st December 2016

1,655

72

1,520

68

Market value of all investments

66,743

59,517

61,302

54,670

Historical cost

51,422

51,314

49,118

47,123

GROUP 2016 £’000

2015 £’000

CHARITY 2016 £’000

2015 £’000

64,935 1,803 5

57,878 1,634 5

59,469 25 1,803 5

53,006 25 1,634 5

66,743

59,517

61,302

54,670

2,095 66

1,848 62

1,919 66

1,442 59

2,161

1,910

1,985

1,501

GROUP 2016 £’000

2015 £’000

CHARITY 2016 £’000

2015 £’000

126

298

126

298

Total value as at 31st December 2016

The market value represents investments including cash of the following categories:

UK investment portfolio UK investment in trading subsidiaries Other UK listed investments UK unlisted investments

Income arising from the above categories UK investment portfolio Other UK listed investments

8(b). SOCIAL INVESTMENTS:

Programme related investments - concessionary loans

Concessionary loans are outstanding secured loans provided to musicians initially at a fixed preferential rate of 5% pa or interest free dependent upon the individual circumstances. More recently, the charity adopted a policy on new secured loans of charging variable rates, linked to the Bank of England base rate, with the provision to waive all or part of the interest charge depending on individual circumstances.

48

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 8(c). INVESTMENTS IN TRADING SUBSIDIARIES:

1. NAME OF SUBSIDIARY MBF Trading Ltd

HOLDING Ordinary Shares

PROPORTION OF VOTING RIGHTS 100%

REGISTERED IN England

INVESTMENT £’000 25

Income from the trading subsidiary is received by way of Gift Aid. Please refer to note 14 for further details.

9. DEBTORS: DUE WITHIN ONE YEAR Unsecured season ticket loans to staff Prepayments Current accounts with trading subsidiaries Other debtors Accrued legacies

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Accruals and deferred income Other taxes & social security Current accounts with associated trusts Grants payable, within one year Other Creditors

GROUP 2016 £’000

2015 £’000

CHARITY 2016 £’000

2015 £’000

21 20 56 1,887

8 19 66 934

21 20 61 52 1,887

8 19 59 55 934

1,984

1,027

2,041

1,075

GROUP 2016 £’000

2015 £’000

CHARITY 2016 £’000

2015 £’000

186 5

38 93 33 214 34

112 448 38 477 145 -

38 93 33 369 184 11

827

412

1,220

728

28 20

28

28 20

28

875

440

1,268

756

137 454 45

CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR Rent deposit Grants over 1 year

49

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 10. CREDITORS: ANALYSIS OF GRANTS PAYABLE: GRANTS TO INDIVIDUALS

GRANTS TO ORGANISATIONS

CRISIS & CARE WORK £’000

CREATIVE £’000

CREATIVE £’000

BAPAM £’000

ASSOCIATED TRUSTS £’000

GROUP TOTAL £’000

1,715 (1,715) -

188 391 (429) 150

26 166 (176) 16

180 (180) -

68 (28) 40

214 2,520 (2,528) 206

Commitments as at 1st January 2016 Plus: Grants awarded in year Less: Payments made in year Commitments as at 31st December 2016

Grant commitments: Amounts falling due within one year Amounts falling due in more than one year

186 20 206

In addition to grants payable noted above, the Trustees have also approved from the unrestricted funds certain grants payable which are subject to the satisfactory fulfilment of grant conditions. The amounts approved in future years, but not accrued as expenditure at 31 December 2016 are as follows: 2016 2015 £’000 £’000 Within 2 years Within 2 to 3 years

16 16

36 16 52

FINANCIAL INSTRUMENTS (ASSETS AND LIABILITIES) 2016 GROUP £’000

CHARITY £’000

2015 GROUP £’000

CHARITY £’000

Financial assets measured at amortised cost (a) Financial assets measured at fair value (b) Financial liabilities measured at amortised cost (c)

2,878 66,869 (830)

2,818 61,248 (1,230)

2,343 59,815 (407)

2,304 54,968 (723)

Net financial assets measured at amortised cost

68,917

62,836

61,751

56,549

(a) The trust 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. (b) Financial assets held at fair value include assets held as investments. (c) Financial liabilities measured at amortised cost include: trade creditors, other creditors, accruals, grants payable and deferred income and amounts due to group undertakings.

50

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 11. RESTRICTED FUNDS BALANCE 31ST DEC 2015 £’000

INCOME £’000

Ivor Newton Bequest Alan Fluck Memorial Fund Jacquéline du Pré Special Fund Ian Fleming Music Awards Fund Gwyneth Harrison Gift

273 289 1,500 1,706 51

Charity totals

EXPENDITURE £’000

GAINS/ LOSSES £’000

BALANCE 31ST DEC 2016 £’000

49 10 64 67 -

(494) (1) (8) (40) (3)

172 34 214 184 -

332 1,770 1,917 48

3,819

190

(546)

604

4,067

Miriam Licette Scholarship Fund Willis Grace Grant Trust Sybil Tutton Charitable Trust Marie Louise von Motesiczky Trust

281 1,366 3,552 7

10 44 122 17

(1) (19) (90) (5)

34 155 424 -

324 1,546 4,008 19

Group Totals

9,025

383

(661)

1,217

9,964

NOTES TO RESTRICTED FUNDS The Ivor Newton Bequest is used for the relief of poverty and financial hardship of older musicians who need substantial support to enable them to enjoy an adequate quality of life, live independently or access the care they require. Trustees made the decision to spend down the fund.

The Alan Fluck Memorial Fund is used towards the costs of the creation of new musical works for young people to perform or listen to.

Ian Fleming Music Awards Fund was created in 2013 as a result of a deed of grant made with the Ian Fleming Charitable Trust. Income from the fund is to be applied towards the advancement of musical education among young musicians with a view to developing their talent and increasing their knowledge and expertise.

The Gwyneth Harrison gift in will received in 2013 required that £60,000 be set aside to provide the accompanist’s prize of the Kathleen Ferrier Award over the next 20 years starting from 2013. The balance on the fund at the end of 31st December 2016 is £48,000.

Income from the Miriam Licette Scholarship Fund is used to provide grants for female singers to further their study of, particularly, French repertoire.

The Willis & Grace Grant Trust was established to support professional musicians over the age of 30.

The Sybil Tutton Charitable Trust provides financial assistance for young opera singers principally through awards. Help Musicians UK became the sole Trustee in May 2009.

The Marie Louise von Motesiczky Charitable Trust entered into a four-year agreement with Help Musicians UK to provide grants to fund the Karl Motesiczky scholarships which will be offered to exceptionally talented postgraduate student cellists between 2014 and 2017.

51

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 12. UNRESTRICTED FUNDS BALANCE 31ST DEC 2015 £’000

INCOME £’000

Designated (fixed asset) Designated (Agenda 2021) General Funds

2,511

296

52,716

Charity Total - unrestricted funds

TRANSFERS/ GAINS/ EXPENDITURE (LOSSES) £’000 £’000

BALANCE 31ST DEC 2016 £’000

4,776

(131) (545) (4,164)

5,200 948

2,676 4,655 54,276

55,227

5,072

(4,840)

6,148

61,607

5,200 948

2,676 4,655 54,276

6,148

61,607

Designated (fixed asset) Designated (Agenda 2021) General Funds

2,511

296

52,716

4,825

(131) (545) (4,213)

Group Total - unrestricted funds

55,227

5,121

(4,889)

DESIGNATED FUNDS Fixed Asset - This relates to the net book value of the office building.

Agenda 2021 - During the year, £5.2m was designated to Agenda 2021 (new strategy) to fund a revised fundraising strategy and modernise the charity to generate £21 million of fund raised income and place the charity on a sustainable path.

52

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 13. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS UNRESTRICTED FUNDS £’000

RESTRICTED ELIMINATE FUNDS INTER-FUND £’000 £’000

TOTAL FUNDS £’000

Fund balances at 31st December 2016 are represented by: Tangible fixed assets Investments Social Investments Current assets Current liabilities

2,676 55,735 126 4,124 (1,006)

11,008

-

671 (1,715)

(1,894) 1,894

2,676 66,743 126 2,901 (827)

Charity totals

61,655

9,964

-

71,619

(48)

-

-

(48)

61,607

9,964

-

71,571

SOCIAL INVESTMENTS INVESTMENTS £’000 £’000

CURRENT ASSETS £’000

TOTAL LIABILITIES £’000

NET ASSETS £’000

Creditors due after one year Total net assets

ANALYSIS BY FUND TANGIBLE FIXED ASSETS £’000 Unrestricted funds Help Musicians UK MBF Trading Designated funds Fixed Asset Fund Agenda 2021

Restricted funds Ivor Newton Bequest Alan Fluck Memorial Fund Jacqueline Du Pré Special Fund Gwyneth Harrison Gift Ian Fleming Music Awards Fund Marie-Louise von Motesiczky Miriam Licette Scholarship Fund Willis & Grace Grant Trust Sybil Tutton Charitable Trust

Inter-fund accounts TOTALS

-

51,080 -

126 -

4,061 63

(1,016) (38)

54,251 25

2,676 -

4,655

-

-

-

2,676 4,655

2,676

55,735

126

4,124

(1,054)

61,607

-

1,527 305 1,907 1,803 302 1,384 3,780

-

27 51 116 33 22 173 249

(1,527) (137) (3) (2) (14) (11) (21)

332 1,770 48 1,917 19 324 1,546 4,008

-

11,008

-

671

(1,715)

9,964

-

-

-

(1,894)

1,894

-

2,676

66,743

126

2,901

(875)

71,571

53

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 14. RESULTS OF TRADING SUBSIDIARY The charity owns 100% of the share capital amounting to 25,000 of ordinary shares of £1 each. MBF Trading Limited (company registered no: 3053538) and located at 7 -11 Britannia Street, London, WC1X 9JS, is engaged in activities to support the charity. The subsidiary donates its taxable profits to the charity each year and its trading results for the year as extracted from its audited financial statements are summarised below:

Turnover Operating costs Gift Aid donations

The assets and liabilities of the subsidiary were;

Current Asset Current Liabilities Share capital

2016 £

2015 £

73,192 (59,636) (13,556)

83,631 (59,926) (23,705)

-

-

2016 £

2015 £

123,301 (98,301)

102,303 (77,303)

25,000

25,000

15. RELATED PARTY TRANSACTIONS The charity is a Trustee, with others, of two charities having independent advisory committees: • The Delius Trust, registered charity 207324. Chairman, David Lloyd-Jones •

RVW Trust, registered charity 1066977. Chairman, Hugh Cobbe

Help Musicians UK provides office accommodation and services, at the charity’s headquarters to these two musical charities. The value of these benefits to the two charities in 2016 amount to £32,000. These two musical charities moved from our premises during 2016 with a commitment from Help Musicians UK to give them a grant of £20,000 each for the next two years to help offset their accommodation costs. This amount has been recorded in the accounts and shown under short and long term creditors.

In addition, Help Musicians UK is the sole Trustee of the following charities which make awards of various kinds and are managed by the charity’s own committees: • Miriam Licette Scholarship Fund (228089-14) • Willis & Grace Grant Trust (228089-15) • Sybil Tutton Charitable Trust (228089-16) • Scottish Musicians Benevolent Fund (SCO12597)

Aggregate donations received from Trustees during the year were £1,710 (2015: £277).

Reimbursements and emoluments are recorded on note 6.

16. PENSION SCHEME Help Musicians UK operates a defined contribution scheme for all qualifying employees. The assets of the funds are held separate in funds administered by independent pension providers. The total cost of pensions incurred by the charity was £110,999 (2015: £121,852).

Included in other creditors is £9,430 (2015: £7,829) in respect of the pension scheme.

54

MUSICIANS BENEVOLENT FUND NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31ST DECEMBER 2016 17. COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 2015 UNRESTRICTED FUNDS £’000

RESTRICTED FUNDS £’000

TOTAL FUNDS £’000

INCOME FROM: Donations and legacies Charitable Activities Other trading activities Investments

2,731 1 134 1,584

5 326

2,736 1 134 1,910

Total income

4,450

331

4,781

EXPENDITURE ON: Raising Funds Charitable Activities

578 3,089

43 867

621 3,956

Total Expenditure

3,667

910

4,577

783

(579)

204

(310)

(57)

(367)

Net (expenditure)

473

(636)

(163)

Net movement in funds

473

(636)

(163)

RECONCILIATION OF FUNDS Total Funds balance bought forward

54,754

9,661

64,415

Total funds carried forward

55,227

9,025

64,252

Net income and net movement in funds before gains and losses on investments Net (losses) on investments

55

MUSICIANS BENEVOLENT FUND YEAR ENDED 31ST DECEMBER 2016

PATRON HM The Queen

MEMBERS There are currently 49 Members of the charity. Under the rules, they are entitled to vote, attend the AGM, elect Trustees, etc.

The membership consists of Trustees and supporters who have been drawn predominantly from the world of music.

TRUSTEES The following persons served as Trustees during 2016: Graham Sheffield, CBE Caragh Merrick Rev’d Ronald Corp OBE Sandeep Dwesar John Axon Martin Campbell-White MBE Adrian Bradbury Judy Grahame Baroness Judith Jolly Kathryn Langridge Jonathan Morrish Felicity Osmond Thomas Sharpe, QC Dr Jonathan Sheldon Suzi Williams David Williams Carolyn Ward

Chairman and Chairman of the Remuneration Committee (until 27/09/16) (until 13/04/16) Honorary Treasurer and Chairman of the Finance & Audit Committee Chairman, Nominations Committee

(From 13/04/16) (From 13/04/16)

SUB-COMMITTEES OF THE BOARD OF TRUSTEES AT 31/12/2016 FINANCE AND AUDIT COMMITTEE Trustee members; Sandeep Dwesar, John Axon, Rev’d Ronald Corp OBE (until 13/04/16), Kathryn Langridge, Thomas Sharpe QC (until 25/02/16), Co-opted advisors: Alex Spofforth, David Chenery (until 25/02/16) NOMINATIONS COMMITTEE Trustee members; Martin Campbell-White MBE (Chairman), Caragh Merrick (27/09/16), Rev’d Ronald Corp OBE (until 13/04/16), John Axon, Thomas Sharpe, Felicity Osmond REMUNERATIONS COMMITTEE Trustee members; Graham Sheffield CBE (Chairman), Caragh Merrick (27/09/16), Rev’d Ronald Corp OBE (until 13/04/16), John Axon, Thomas Sharpe QC, Kathryn Langridge, Sandeep Dwesar EXECUTIVE TEAM Richard Robinson Martin Ensom Claire Gevaux Kessington Ijegbai Christine Brown Jonathon Inskip

Chief Executive Officer Director of Finance & Operations and Company Secretary (until 31.05.16) Creative Director Director of Finance & Operations (from 01/06/16) Director of External Affairs (from 01/06/16) Interim Director of Health & Welfare (from 11/10/16)

PROFESSIONAL ADVISORS INVESTMENT MANAGERS Rathbone Brothers plc 1 Curzon Street, London W1J 5FB Brewin Dolphin Ltd 12 Smithfield Street, London EC1A 9BD AUDITORS haysmacintyre, Chartered Accountants

26 Red Lion Street, London, WC1R 4AG

SOLICITORS IBB Solicitors

Capital Court, 30 Windsor Street, Uxbridge UB8 1AB

BANKERS HSBC Bank plc

117 Great Portland Street, London W1W 6QJ

GET IN TOUCH helpmusicians.org.uk 020 7239 9100 info@helpmusicians.org.uk

@HelpMusiciansUK

/HelpMusiciansUK helpmusicians.org.uk 7-11 Britannia Street, London WC1X 9JS Registered Charity No. 228089 CHAIR Graham Sheffield CBE EXECUTIVE DIRECTOR Richard Robinson PATRON H M The Queen