Help Musicians UK Annual Report 2017

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Annual Report and Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2017

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. helpmusicians.org.uk

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Contents

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

Chairman’s message

4

Chief Executive’s message

5

Trustees’ report incorporating strategic report

6

Objects of the charity

6

Annual General Meeting

9

Public benefit

9

The strategic plan: Agenda 2021

10

Health & Welfare

16

Creative Programme

21

Communications

24

Fundraising

28

Regional activity

30

Operations

34

Financial review

36

Principal risks and uncertainties

40

Statement of Trustees’ responsibilities

42

Independent auditor’s report

44

Summary

46

Consolidated Statement of Financial Activities

48

Balance Sheets

49

Consolidated Statement of Cash Flows

50

Notes to the consolidated accounts

51

CHAIRMAN'S MESSAGE |

Chairman’s

message I am proud to say that almost two years into our ambitious five-year strategic plan, Agenda 2021, we have been making significant strides to provide more proactive support to musicians at all stages of their lives and careers.

One of the biggest milestones this year was the launch of Music Minds Matter – the most comprehensive mental health service for the music industry. Our Health & Welfare service has been a staple of the charity since the beginning, and this brand-new support line and service will enable a more accessible lifeline for the entire UK music community. It’s open 24 hours a day, seven days a week and is free of charge.

We are diversifying as a charity, and through this, we have impacted more musicians in 2017 than any other year in our history. The widening of our eligibility criteria, innovative funding opportunities, and effective campaigning will see this impact increase even further in 2018.

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

2017 was a crucial year that further solidified Help Musicians UK’s position as the leading independent music charity in the country. From expanding our national reach with new regional offices and schemes, to honouring the great tradition this charity represents with the Festival of St Cecilia, Help Musicians UK is truly a charity that is leading the approach to supporting musicians across the UK. From opening the Northern Ireland office in 2016, to Help Musicians Scotland launching in early 2018, we are excited to be looking next to Wales as we increase our reach and impact across the UK. A large commitment of Agenda 2021 is for Help Musicians UK to be a truly national charity, accessible to all musicians across all genres. We are well on our way.

2017 has been a monumental year for the charity. Just shy of two years into our fiveyear strategic plan, Agenda 2021, we have transformed from a grant-making trust to a campaigning powerhouse – underpinned by an innovative Creative Programme and a lifechanging Health & Welfare provision.

Strong foundations have been laid for the future as we modernise and evaluate how we can provide the best, tailored support to the industry going forward – from the way we fundraise, campaign and communicate, to our grants and support capabilities.

THIS CHARITY IS 96 YEARS OLD, BUT IT’S NOT SLOWING DOWN. We are pleased to announce and confirm that in 2017, we impacted over 14,000 people in the music industry. This is a record number for the charity and over five times* the number of musicians (2,552*) we impacted in 2014.

Despite this dramatic increase, this figure is expected to rise even further in 2018, as Help Musicians UK’s recently reviewed eligibility criteria will result in more music professionals being able to access the charity’s grants than in previous years.

Campaigning and advocating around issues that affect musicians continues to be high on our agenda. We were proud this year to launch the final phase of the Can Music Make You Sick? commissioned research, and to announce Music Minds Matter, a 24/7 mental health support line for the whole UK music industry. This is the most comprehensive service the industry has ever seen. Offering listening, signposting, counselling, and advice on debt, welfare and legal issues, this service is arriving at a pivotal time in the industry and it will change lives.

This year we also saw new doors open to strategic partnerships. From the Q Awards and mixing with the brightest in contemporary music talent, to a groundbreaking partnership with the global non-profit Women in Music initiative, we continue to align with like-minded organisations to inform and deliver our work.

As we strived to reach our ambitious vision and targets as part of Agenda 2021, we welcomed the charity’s first Director of Fundraising and International Music Liaison Executive to the team to drive us towards our £21 million fundraising goal by our Centenary year, 2021.

With our Northern Ireland office celebrating its first year and Help Musicians Scotland launching early in 2018, we truly have cemented our place as the leading charity for the industry with national reach.

I am proud to lead this incredible charity as we continue to develop our services and provide opportunities to people from all walks of life and backgrounds.

In 2018, we will work hard to strengthen our brand position, grow our volunteer network, and innovate our fundraising approach. It’s exciting to be part of a charity that, after 96 years, is still testing the boundaries, advancing, and challenging what’s been done before.

I’m thrilled for you all to be part of this incredible journey of growth and change for Help Musicians UK.

Graham Sheffield CBE CHAIRMAN

Richard Robinson CHIEF EXECUTIVE

Chief Executive’s

message

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*Figures quoted (five and 2,552) have been updated from those published on the Charity Commission website version of this report (16 and 800).

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TRUSTEE’S REPORT | TRUSTEES’

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Trustees’ report

incorporating strategic report Objects of the charity 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, and the audited financial statements for the year ended 31 December 2017.

Grant-making policy STRUCTURE, GOVERNANCE AND MANAGEMENT OF THE CHARITY The charity is comprised of: •M embers – There are 49 ‘members’ liable for £1 each.

•B oard 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.

•S ub-committees – These receive policy OBJECTS OF THE CHARITY recommendations from the Executive Team.

They often co-opt specialist advisors who • To relieve poverty and financial hardship and to support the charity’s work. There are three advance education among: sub-committees: (1) musicians.

– Finance and Audit Committee – Reviews (2) those persons (not being members of the budgeting, financial strategy, financial association) who work or have worked performance, audit, reporting and risk in professions or occupations closely management. connected with music and who in the –N ominations Committee – Recruits and opinion of the association have rendered appoints Trustees and co-opted advisors in valuable service to music. collaboration with the Chief Executive. The (3) t he spouses, children and other dependants committee meets as and when necessary. of those set out in (1) and (2) above.

–R emuneration Committee – Convenes • To advance musical education among once a year to discuss and decide levels of musicians and members of the public. staff remuneration.

•A dvisory boards – Established in 2016, these boards oversee the strategic direction and monitoring of programmes. There are three boards: – Creative Advisory Board – Musicians Health Advisory Board – Development Board

HEALTH & WELFARE Help Musicians UK (HMUK) is here for musicians at any time during their working lives and beyond. The charity welcomes musicians, and those in the wider industry, in need of help, advice and guidance. The charity strives to help musicians in whichever way is most relevant to them, through six key service offerings: 1. F inancial assistance – Helps musicians in a wide variety of circumstances. However, as a benevolent fund, most musicians who approach the charity require financial assistance.

2. A dvice and signposting – Advice and guidance may complement financial assistance, and in some cases, it is all that might be required. The charity might offer advice directly or signpost to a specialist agency.

3. V isiting/support/befriending – Regular visits from staff or volunteers to review musicians’ needs, including social, is an important part of the support the charity offers to musicians of all ages.

4. M usicians' Hearing Health Scheme – This is a scheme to give all musicians affordable access to specialist hearing assessments and bespoke hearing protection.

5. E merging Musicians Health Scheme – The charity may be able to help with a grant of up to £750 towards the cost of health care (psychological or physical) if a performancerelated condition interrupts music studies or getting started in the music industry.

6. M usic Minds Matter – This free, 24/7 mental health support line and service provides emotional support, listening, information and signposting. There is also access to counselling and other specialist advice for those who meet the charity's eligibility criteria.

CREATIVE PROGRAMME The Creative Programme comprises several funding schemes that offer grants to individuals, groups and organisations. The programme strategy is guided by the goals of Agenda 2021 and is overseen by the Creative Advisory Board.

In partnership with the Creative Director, this Board is responsible for ensuring that the strategic priorities and goals are measured and monitored effectively and that reports are submitted to the Finance and Audit Committee when required.

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 of offering funding.

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TRUSTEES' REPORT |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Trustee recruitment and training In 2017, the charity undertook an audit of Trustees’ skills, identifying a need for six new Trustees with specific skills. The charity anticipates appointing these new Trustees in early 2018. New Trustees will have a full induction to provide them with the necessary background to enable them to effectively oversee the charity whilst fulfilling their other duties as Trustees and Directors.

Annual General Meeting The 88th Annual General Meeting will be held on Wednesday, 26 April 2018, at 7-11 Britannia Street, London WC1X 9JS. In accordance with the Memorandum and Articles of Association, the following members of the Board of Trustees retire by rotation or, being eligible, offer themselves for re-election: • Suzi Williams • John Axon Alex Spofforth, having been co-opted as a Trustee on 1 June 2017, now offers himself for election.

Public benefit 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. The creative satisfaction of being a musician or working in the music profession can be rewarding, but this potent mix of risk factors is why the charity exists.

The charity supports musicians by offering advice, guidance and financial support. It is committed to the health and wellbeing of musicians and it supports performers from all backgrounds and genres across the UK. This support encompasses three categories: 1. M usicians at the point of entering the profession and continuous professional development.

2. Musicians in their working lives who experience a crisis, illness or accident.

3. M usicians in retirement and in later life.

In addition to performing musicians (which includes instrumentalists, singers and composers), the charity offers support to people who have worked in the wider music profession. This includes artist managers, sound engineers/ technicians and music librarians. The charity delivers in-house programmes and works with partner organisations that are focused on the wellbeing and professional development of people in the wider industry.

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THE STRATEGIC PLAN: AGENDA 2021 |

The Strategic Plan: Agenda 2021

Following extensive consultation with stakeholders, HMUK developed a strategy for 2016-2021. The strategy is titled Agenda 2021 in honour of the charity’s Centenary year. It adopts a Vision, Mission and Values approach. These are supported by broad priorities and goals. Detailed Key Performance Indicators (KPIs) help each team to track their progress towards achieving these goals.

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Priorities and Goals Agenda 2021 is focused on six broad priority areas that were defined through extensive consultation with staff and external stakeholders.

Each of these priorities is supported by two or more specific goals which form the basis of each department’s annual operational plan.

The priorities and goals are listed below.

Transform

Reach

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 & 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.

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.

6

HMUK’s campaigning activity will raise awareness and influence behaviours and national policies on fundamental issues affecting musicians, including hearing and mental health.

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

8

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

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

Vision A world where music thrives.

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Campaign

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

Innovate

Values To ensure HMUK is a high performing organisation, it underpins its work with a strong values-based culture, ensuring that its values are central to how work is delivered externally and internally. The following values were arrived at following employee consultation:

Invest

• Passion

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.

• Making a difference • Positivity

10 Between 2016 and 2021 the charity will raise £21 million through fundraising, across

Commit

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

externally.

13 HMUK beneficiaries will find services timely and easy to access, and the costs of

activity, and impact created, will compare favourably when benchmarked with others.

• Trust

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

• Collaboration

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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THE STRATEGIC PLAN: AGENDA 2021 |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Progress on Agenda 2021 INCOME Fundraising performance in 2016 was stifled by the charity’s embedded approach, which relied on its original model of enhanced stewardship and event management. The Agenda 2021 strategy formed the foundation of an operational plan for fundraising. Further impetus came from the strong performance of campaigns and, as a result, donations (excluding legacies) increased by 29% on results from 2015.

Throughout 2017, the Fundraising Team’s key objective was to establish a strategy to fundraise towards the charity’s ambitious target of £21 million by 2021, as stated in Agenda 2021. This required the appointment of the charity’s first Director of Fundraising and a restructure of the Fundraising Team to attract and retain a broad range of skills and competencies.

In 2018, the charity will focus on diversifying its income streams by bringing to fruition the investment made in fundraising during 2017 to realise its £21 million target by 2021.

EXPENDITURE The total sum of £6.7 million (£5.2 million in 2016, and a further £1.5 million in 2017) was established to modernise HMUK and help the charity achieve the priorities outlined in its strategic plan Agenda 2021. To date, this fund has enabled the charity to: • Vary and increase its grant-giving (through the Creative Programme).

• Vary and increase its payments to musicians (through Health & Welfare).

• Launch new campaigns and schemes.

• Extend services based on the needs of the music community.

• Support business development, including regionalisation.

The table below shows how this fund was spent during 2016 and 2017.

ITEMS

2017 (£'000)

2016 (£'000)

Health & Welfare

325

253

Creative Programme

605

70

Northern Ireland

98

52

Other grant-related costs

72

0

Overheads

45

64

Staff costs

–

106

1,145

545

TOTAL

The key achievements resulting from this expenditure are detailed throughout this report, and summarised in the points below: • H ealth & Welfare added to its existing services by expanding the Musicians' Hearing Health Scheme and launching the Music Minds Matter mental health support line and service.

• T he Creative Programme revitalised and continued to respond to industry feedback throughout the year by launching several new grants.

• T he Northern Ireland office appointed a Development Manager and delivered several initiatives throughout the region in consultation with local talent and organisations.

• O ther grant-related costs included the development of a volunteer network, Creative Programme auditions and visiting expenses.

• O verhead costs included normal depreciation of office equipment and infrastructure to support staff expansion.

• D irect staff costs included one new role in the Creative Programme Team, new roles in the Communications & Partnerships Team and an overall increase in Full Time Equivalent (FTE) from 30 (2016) to 41.

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THE STRATEGIC PLAN: AGENDA 2021 |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Measuring performance and impact against Agenda 2021 Throughout 2017, a total of 70 KPIs were used for measuring the charity’s progress toward achieving its strategic goals. This KPI data, reflecting the charity’s direct impact on the music industry, was collated every quarter and used at an operational level to drive organisational performance. High-level summaries of this data were reviewed through the charity’s governance structure and are also presented throughout the body of this report.

Toward the latter part of the year, the charity extended its analysis of impact to include people working with HMUK grant recipients who are likely to have been positively impacted by association. This indirect impact data was added to the direct impact data to form the table below. The total impact figure for 2017 broke through forecast numbers due to a higher than expected number of people accessing the Musicians’ Hearing Health Scheme.

2017

2016

2015

2014

ACTUAL

ACTUAL

ACTUAL

ACTUAL

TOTAL IMPACT

TOTAL IMPACT

TOTAL IMPACT

TOTAL IMPACT

14,117

6,529

2,375

2,552

Total impact data has also been projected for the years 2018 to 2021, providing benchmarks against which the charity will continue to monitor its own performance. In 2018, the charity will implement an interactive reporting dashboard via its website. This will enable external stakeholders to analyse its activity, impact and performance against a range of variables.

In 2018, the charity will implement an interactive reporting dashboard via its website. This will enable external stakeholders to analyse its activity, impact and performance against a range of variables.

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HEALTH & WELFARE |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Health & Welfare Following the 2016 review of the Health & Welfare service, the charity modernised its offerings to musicians across the country by removing barriers, improving access and increasing investment. This has resulted in more:

Health & Welfare payments

6,000

• Young and emerging musicians being able to access the charity’s services.

•P eople working in non-traditional music roles (lighting engineers, agents and music journalists for example) being considered for grants.

5,000

The charity established a Musicians Health Advisory Board to highlight and advise on relevant policy changes and gain approval for new strategic ventures. This Board comprises 14 people, external to the charity, from a range of professions including clinical, welfare, advocacy and music. It commenced on 7 September 2017, meets quarterly and reports to the charity’s Board of Trustees.

4,000

For the first time, the charity entered into contract negotiations, offering financial support to a PhD student for a three-year period. This will be in partnership with the Royal Liverpool Philharmonic Orchestra and Liverpool John Moore’s University and will commence in 2018.

Drawing upon cutting edge sports science, the PhD student will research music-related musculoskeletal and movement injuries and will offer preventative strategies. This research will form the beginning of a series of focused health-related studies that will inform the charity’s future offerings.

2,000

4,766

3,000

£2,072 1,935

£1,895

1,000 0

2016

Number of musicians paid

" Help Musicians UK has helped me financially with my piano tuning, domestic help and friendly visits, never forgetting my birthday or Christmas – little kindnesses that make such a difference to my wellbeing."

Lauretta Boston

2017

Total value of payments (£’000)

In 2017, the charity supported 4,766 musicians through its Health & Welfare services, spending over £2 million.

This compares favourably with 2016, where the charity supported 1,935 musicians at a spend of almost £1.9 million.

The 4,766 musicians supported in 2017 accessed one or more of the three Health & Welfare services listed below: • 2,806 professional musicians accessed the main health assessment and support programme.

• 1,784 professional musicians accessed the Musicians’ Hearing Health Scheme.

• 176 music students accessed the Music Student Health Scheme.

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HEALTH & WELFARE |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Medical Assessments

Music Minds Matter

For over 20 years, HMUK has commissioned the British Association for Performing Arts Medicine (BAPAM) to provide medical assessments and treatments to professional and student musicians. In December 2017, the charity entered into a three-year contractual agreement with BAPAM for the period 2018 – 2021, agreeing to pay BAPAM a total of £200,000 per year to ensure more musicians are reached across the UK.

The most comprehensive mental health support line and service for the British music industry, Music Minds Matter was launched by the charity on 1 December 2017 after almost a year of planning, training and development. By 31 December, the service had received 95 queries (50 phone calls and 45 email queries).

Musicians’ Hearing Health Scheme The charity’s most successful scheme, the Musicians’ Hearing Health Scheme, has gone from strength to strength, with over 5,000 applications received since August 2016. The scheme, along with the #HearForMusicians campaign, will re-launch in early 2018 in partnership with Musicians’ Hearing Services and the Musicians’ Union. Due to the scheme’s rising demand, the charity has expanded its reach across the UK from eight to 17 clinic locations. The charity anticipates receiving approximately 4,000 applications for the scheme in 2018.

Music Student Health Scheme The Music Student Health Scheme has been in place for over 10 years. In 2017, it supported 176 students, comparing favourably to 2016 during which it supported 113 students. As of 2018, it will be referred to as the Emerging Musicians Health Scheme. It will have a wider scope and more flexible eligibility criteria. This will include opening to musicians 18 years of age and above, not just to musicians who are mid-way through their training.

Home Visiting Scheme The total number of regular visits for 2017 was 603 in comparison to the 559 undertaken in 2016. As home visits average between 60 and 90 minutes, approximately 600 hours have been spent with musicians in their homes. The charity has nine Regional Visitors undertaking these visits and 20 Volunteer Visitors who complete quarterly social visits to musicians.

Available 24/7, the support line provides vital emotional support and signposting from trained advisors. Callers may also be able to access cognitive behavioural therapy and advice on welfare, legal and debt issues, upon approval from the charity’s Health & Welfare Team.

This service represents the biggest financial commitment from HMUK, with just under £1 million earmarked for the next four years. It will be evaluated continuously and adapted to suit the needs of the people who access the support line. Over time, the charity will use the evaluation findings to develop additional services so that those working in the music industry can access support tailored to their unique needs.

Plans for 2018 In 2018, the charity will continue to develop its understanding of how it can best support people working in the music industry. It will further develop its offerings on hearing conservation, mental health and musculoskeletal function for musicians across the UK and across all genres.

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CREATIVE PROGRAMME |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Creative Programme 1400

1200

1000

£1,171

800

600 £557 400

200

256 195

0

2016

Number of awards given

2017

Total value of awards (£’000)

In 2017, the Creative Programme offered 256 grants and awards to musicians and organisations, spending almost £1.2 million through five strands of activity.

This is a significant increase from 2016 which saw the charity offering 195 grants and awards and spending £557,000.

Photography: Mike Sewell

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CREATIVE PROGRAMME |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Five strands of activity

Plans for 2018

2017 was a significant year for the Creative Programme. After a radical transformation from a reactive grant-giving programme to a proactive change-making programme, the charity’s impact increased across the whole of the music industry and throughout the UK. To make these significant changes, the programme focused on five core strands of activity:

In 2018, the Creative Programme will reach even more emerging artists from diverse backgrounds, geographies, genres, and career stages. Specifically, it will:

1 T he Learning strand continued to provide crucial financial support to talented musicians, supporting 101 students pursuing postgraduate study in classical music, jazz, opera, musical theatre and popular music courses at major performing arts colleges and conservatoires.

2 P rofessional Development delivered a final round of 20 Career Development Bursaries and was then revitalised into two separate funds: 'Transmission' and 'Fusion'.

Offering funding to musicians of all ages by removing the previous upper age limit of 35, these refreshed funding programmes resulted in 43 awards being made to musicians. The MOBO Help Musicians Fund reached 11 artists working in genres beyond the commercial heartland. The Peter Whittingham Jazz Award made significant progress in supporting gender equality, with 42% of applications this year from female musicians.

3 T he National Grants Programme funded 20 organisations to work with musicians on artistic practice, talent and professional development initiatives. This work was spread across the UK, expanding beyond the charity’s previous organisational partnerships in England. With a total investment of £1.7 million over three years (£552,000 of this was spent in 2017), it is expected that these initiatives will reach over 7,000 musicians by the year 2020.

4 H MUK Futures supported innovation and leadership in the sector. 2017 focused on challenging gender barriers within the music industry through its focus on Musical Leaders, an initiative influenced by the charity’s partnership with Women in Music.

This year saw the launch of the Jazz Promoters Fellowship, a year-long fellowship that aims to create a gender-balanced approach through nurturing a new generation of six promoters. This strand also awarded new funding to the artist-led conference From Me to You, which brought together 85 independent artists to share best practice in artist entrepreneurship and to develop their professional networks.

5 N ations and Regions strengthened the charity’s presence in Northern Ireland and Scotland through bespoke funding programmes. In Northern Ireland, 3:3 delivered the first year of a three-year development programme for three artists and their teams.

The Creative Employment Programme in Northern Ireland, joint-funded with CC Skills, supported 12 six-month internships in a range of organisations, building their capacity and development, and bolstering the music infrastructure across Northern Ireland. In Scotland, the Creative Programme supported a bursary scheme for 86 musicians and industry professionals to attend the Resonate and Wide Days conferences. The charity also created partnerships with the Cultural Enterprise Office, New Music Scotland, and the Scottish Music Industry Association.

•D evelop an impactful learning offer that is fit for purpose in the present and future music industry.

•E nhance its focus on gender equality and diversity throughout every strand of the Creative Programme.

•D evelop a national mentoring offer, with a focus on musicians and those working in the industry who face barriers to progress their careers.

•D evelop and embed a new programme strand, with multiple partners, to support the needs of emerging artists.

•D evelop the HMUK Futures Technology strand to support artists to use technology as a tool for creative practice and income generation.

•C ontinue to develop 'Space to Perform' as a sixth strand of activity, focusing on venues, festivals and touring opportunities for artists.

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COMMUNICATIONS |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Communications This year saw tremendous growth and opportunities for the Communications & Partnerships Team. It fostered and cultivated new partnerships whilst continuing to campaign around issues that affect musicians. An ongoing priority throughout 2017 was refining the charity’s brand so it's ready for launch in 2018.

Campaigning In response to several untimely and high-profile musician deaths in 2017, the charity launched its #MusicMindsMatter campaign in July, with a commitment to deliver a 24/7 mental health support line and service for people working in the music industry. This announcement received national and international press coverage and resulted in the most successful social media engagement the charity has ever had.

Can Music Make You Sick?

Final Report and Recommendations A Help Musicians UK report based on a commissioned University of Westminster study

The charity continued to build on this unprecedented press coverage with the launch of the Can Music Make You Sick? Final Report and Recommendations, in October 2017. The media event took place at Shoreditch House and was attended by key media and industry bodies.

The research findings were reported in Noisey, M Magazine, R1 Newsbeat, and Billboard. This announcement was launched in conjunction with a new satellite website around the commissioned research and the Music Minds Matter service, an all-encompassing portal for the charity’s mental health campaign and commitments.

musicmindsmatter.org.uk

Full report at musicmindsmatter.org.uk

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COMMUNICATIONS |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Impact on social media

Partnerships

Throughout 2017, the charity’s engagement on social media was significantly higher than it was in 2016, as seen by the chart below.

In 2017, the charity saw unprecedented growth in its strategic partnerships.

To ensure it continued its presence across a broad range of music industry events, the charity maintained valuable partnerships with The Great Escape, Independent Venue Week, Record Store Day, Gramophone Awards, the Association of Independent Festivals, and the London Jazz Festival. The charity participated in over 30 panels throughout the year, many of which were focused on musicians’ mental health. These panels comprised musicians, clinicians and researchers who shared experiences, encouraged open dialogue on these critical issues, and planned the next steps for the industry.

2016 25,000 2017 20,000

21,271 16,986

15,000 10,000 6,504

5,000 4,165 0

1,516

Facebook page likes

Twitter followers

4,337

YouTube video views

The charity forged several new strategic partnerships across the four nations of the UK. These included: the Creative Programme’s Help Musicians Fund in partnership with the MOBO Trust; writing the foreword for the Music Managers Forum’s Music Manager’s Guide to Mental Health; and providing volunteer support and ‘powering’ the Henry McCullough stage at Stendhal Festival.

Partnerships were also formed with the SAY Awards and the Q Awards. HMUK partnerships also extended beyond the UK to include links with the US-based, not-for-profit Women in Music initiative, establishing the charity’s first European chapter of the organisation, Women in Music Great Britain and Women in Music Northern Ireland.

Email campaigns

Plans for 2018

Email campaigns were also used throughout 2017, resulting in an average open rate of 49%, which is more than twice the national average (23%) for email marketing campaigns.

THE COMMUNICATIONS & PARTNERSHIPS TEAM WILL FOCUS ON:

No. email campaigns Average open rate (%)

71

•C ontinuing to align with like-minded organisations to expand its reach and profile across the UK and internationally.

• Continuing to affect positive change in the lives of musicians.

60

• Relaunch #HearForMusicians in early 2018.

50

49

46

40 30

31

•C ontinue to develop the #MusicMindsMatter campaign, supported by the support line and service.

10

2016

•R efreshed, targeted marketing plan for the Health & Welfare Team, ensuring their schemes can be accessed by more musicians than ever before.

•A nnouncing its UK-wide offering with Women in Music, leading into a campaign focused on gender equality.

20

0

• Adding new executive projects and business development structures.

• Developing a robust partnership framework.

80 70

• Launching the charity’s refreshed brand.

2017

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FUNDRAISING |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Fundraising

Achievements in 2017 • The total number of volunteers increased from 96 to 122 throughout the year.

• The Festival of St Cecilia attracted over 1,100 guests, raising over £45,000.

Throughout 2017, the Fundraising Team’s key objective was to establish a strong operational platform to fundraise towards the charity’s ambitious target of £21 million by 2021, as stated in Agenda 2021. This required development of the charity’s database and a new Fundraising Team structure, resulting in the creation of several new roles. The team also continued cultivating relationships with hundreds of supporters (both individuals and organisations) through engagement at events, by expanding the charity’s reach across the nations and regions, and as a result of increased visibility due to creative programming activities and various high-profile campaigns.

A new approach to fundraising The new Fundraising Preference Service sits alongside the Information Commissioner’s Office (ICO) as part of the new Fundraising Regulator. The charity is conscious that it needs to adjust its approach in response to changes in the way people give and to ensure compliance with these new regulations. We are currently developing new fundraising initiatives and the charity recognises the need to invest funds and resources in the short-term to ensure a sustainable fundraising model in the long-term, and one that will see a diminished reliance on legacies with diversification across different income streams.

With the appointment of the new Director of Fundraising in 2017, and a subsequent restructure to the Fundraising Team, the charity is increasing its transparency in everything it does.

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

HMUK expects all third parties that it works with to meet the same high standards as its own staff.

As such, it embedded a more stringent approach to its contractual agreements, one that clearly outlines its expectations about ethical behaviour and compliance with the requirements of the GDPR.

The number of complaints received This year we sent out 15,273 fundraising communications and received zero complaints. We take all complaints seriously and aim to resolve or acknowledge receipt of all complaints immediately, certainly within five working days.

• Legacy income was almost £3 million.

•A ppointment of new staff – Director of Fundraising, Fundraising & Events Officer, Trusts & Foundations Officer.

• Substantial donations were solicited from the organisations listed below: – Promenaders Musical Charities donated over £40,000.

–M usicians Answering Service committed over £10,000 in celebration of its 40th anniversary year.

–M arsh Ltd (insurance broker and risk management firm) donated £10,000 as part of a three-year partnership to support the charity’s Musicians’ Hearing Health Scheme.

•T he charity reviewed its database, establishing a new system for activity monitoring and reporting.

Plans for 2018 •T hrough its first fundraising appeal, the charity will establish its core proposition in line with the rebrand, reflecting HMUK’s vision, mission and strategic goals.

•T he charity will launch a specific appeal to raise money for Music Minds Matter mental health support line and service.

•E xcluding income from legacy donors, the charity will more than double its income from generous individuals and organisations, enabling the achievement of its strategic goals.

•T he team will implement a proactive and strategic approach to corporate and major donor fundraising through engagement with the Development Board and networks in the music industry.

•A coordinated approach will be adopted across nations and regions to stimulate income and achieve the strategic goal of expanding the charity’s reach.

•S trategic trust and foundation applications will uncover opportunities for longer term, sustainable partnerships that result in greater impact on the music industry.

• F undraising events and partnerships will be developed in collaboration with the charity’s Business Development function.

•T he GDPR deadline (May 2018) will be met for obtaining donors’ consent for their details to be retained by the charity.

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REGIONAL ACTIVITY |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Regional activity Overview Agenda 2021 set out an intention to establish national and regional clusters with local organisations playing a key role. This decision was made because it has been demonstrated that regionally-based organisations are best placed to increase the charity’s aim to reach musicians across nations and across genres. The charity is accomplishing this by facilitating meetings with local stakeholders who understand the needs of their community and can create locally-relevant action plans over an agreed timeframe. Specifically, these action plans focus on supporting the health, wellbeing and creative opportunities of musicians at a local level.

2018

2016

Throughout 2017, HMUK had several achievements in Northern Ireland and Scotland, many of which are listed below. Concurrent to this activity, the charity developed vital partnerships with organisations outside of the UK, and it expects to build upon these in 2018, to promote UK talent.

Achievements in Northern Ireland 2017 •A ppointment of a Northern Ireland Development Manager.

•D eveloped nine new partnerships with established and emerging stakeholders in the Northern Irish musical landscape.

•S tendhal Festival was HMNI’s most significant event in 2017, engaging 440 attendant musicians and increasing HMNI branding exposure on regional television, radio, print and social media.

•H MNI formed a partnership with Women’s Work, •T hrough partnerships, Help Musicians Northern facilitating its desire to support and empower Ireland (HMNI) created events and increased the women in the music industry. profile and awareness of its work in the region whilst maximising opportunities to support the •T he charity’s Health & Welfare service now health, wellbeing and creative opportunities of directly supports 17 musicians in NI, compared local musicians. to the four musicians supported prior to the establishment of the HMNI office.

•T hrough its partnership with Music Venue Trust, HMNI now has 16 music venues participating in • H MNI has had discussions, interviews and the Music Venue Alliance operating across NI, mentions on regionally-based radio and print not just Belfast. outlets such as Chordblossom, The Thin Air, Culture Northern Ireland, Belfast Telegraph, BBC •H MNI has brought Independent Venue Week – Across The Line, Q Radio, Blast106.4fm and to the region through its partnership with local Complete Music Update’s Setlist Podcast. organisations.

•H MNI established its own Facebook and Twitter.

•C ulture Night Belfast was the largest public engagement event of the week with an estimated 40,000 members of the public exposed to HMNI branding across the region.

Plans for Northern Ireland 2018 •C ontinue to raise the profile of the charity across the region whilst refining and promoting its key messages.

•C ontinue to align with like-minded organisations and work collaboratively.

•C ontinue to affect positive change in the lives of musicians and the health and development of the NI music industry.

•P articipate in the promotion of HMUK’s partnership with Women in Music.

•C ontinue to signpost musicians to the various services offered through the charity’s Creative Programme and Health & Welfare service.

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REGIONAL ACTIVITY |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Achievements in Scotland 2017 •H MUK Creative Director was nominated as the strategic lead for Help Musicians Scotland (HM Scotland) in January 2017.

• Showcased the Scottish rising star, Be Charlotte, at The Great Escape showcase of artists from the nations HMUK has already supported.

•T his Scotland Director attended a panel discussion in Aberdeen with 57 Degrees • HM Scotland hosted a stand at XpoNorth North, Scottish Music Industry Association and in Inverness, the industry conference and Creative Scotland. The Scotland Director also showcase event in the Highlands. joined the judging panel for the 2017 Scottish • A Development Officer was appointed to the Album of the Year awards, and HMUK became HM Scotland office in June 2017 and attended the official charity partner for the awards. the Dumfries Music Conference to speak on a • Roundtable discussions were held with panel about HMUK funding. over 100 artists, industry professionals and • Secured space for the HM Scotland office in the organisations representing the music sector.

Scottish Music Centre in Glasgow.

• Supported the New Music Performer of the • Following consultation with the sector, HM Year category at the Scottish Awards for Scotland created ‘HM Fusion’, a new open New Music. application programme enabling creative • The Creative Programme offered 50 bursaries collaborations. to the Wide Days music convention in • HMUK offered 50 musician bursaries to the Edinburgh to ensure access to networking and Resonate industry conference in Glasgow for professional development opportunities for artists and industry professionals who couldn’t people who couldn’t otherwise afford to attend. otherwise afford to attend.

Plans for Scotland 2018 • HM Scotland office established in Glasgow.

• Partnership with Scottish Music Industry Association.

•T hree newly-created posts will be appointed in the HM Scotland office. These will include • New funding programmes bespoke for a Development Manager, a Volunteer & Scotland.

Fundraising Officer and a Programmes & • The Musicians’ Hearing Health Scheme will Outreach Officer. A part-time Music Liaison role further expand into Scotland. will also be created in 2018.

• Music Minds Matter will continue to be available • HM Scotland will publicly launch on 1 February to people working in the music industry will 2018, with a major campaign, Rooted In further expand in Scotland.

Scotland, which will celebrate the permanent presence of HM Scotland throughout the nation.

Photography: Ciara McMullan

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OPERATIONS |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Operations Human Resources The charity’s strategic workforce planning enabled it to grow from 30 to 41 employees during 2017. With professional leadership and flexible, talent-focused approaches to managing its people in a fair and reasonable manner, HMUK is achieving the goals outlined in Agenda 2021.

In 2018, the charity will continue its progress toward achieving its strategic goal (16) of being an effective charity with a talented and committed governing body and empowered employees and volunteers. HMUK will continue to develop the talents of employees and volunteers to deliver the best support and services to musicians we support.

Information Technology In 2016 an independent review of the charity’s IT infrastructure was carried out, and most of its recommendations were implemented in 2017. These included: migrating to a predominantly cloud-based server infrastructure; providing resilient and highly-available systems; facilitating remote working; and supporting the geographically dispersed network of volunteers and the growth of regional offices. This infrastructure also allows the charity to leverage the latest technology, as it becomes available, and roll-out in an evolutionary manner without the expense of major platform upgrades.

Information security has been a significant focus, with numerous controls implemented, as well as fundamental changes to infrastructure design. Security remains at the heart of IT operations into 2018, as additional cloud services are rolled out to aid internal collaboration and communication. Ageing desktop, laptop and mobile equipment has been replaced. The combination of new equipment and utilising technology to promote more agile ways of working will support the organisation as it delivers its Agenda 2021 strategy over the coming years.

Compliance with the General Data Protection Regulations The new General Data Protection Regulations (GDPR) will be enforced across the EU as of May 2018. In preparation for this, the charity commissioned the services of an expert consultant to assess its capacity to comply with the regulations. The consultant undertook a full systems audit in August 2017, identified priority actions and made recommendations for improvement.

These recommendations are now being implemented by the charity’s Information Governance Management Group (IGMG). Going forward, the IGMG will ensure ongoing, organisation-wide compliance with the regulations through pro-active internal audits and diligence in continually scanning the external environment to ensure that the charity is flexible enough to respond to, and ensure full compliance with, all new regulations pertaining to data protection.

The Information Governance Management Framework provides a framework for all aspects of our data protection, information security, and related processes and procedures. The framework regulates the way information (including information relating to and identifying individuals) is managed, i.e. obtained, handled, used and disclosed.

Facilities Our Facilities Management Team ensures a pleasant physical environment is maintained, whilst complying with all relevant health and safety standards and regulations. During 2017, there were significant improvements made to the head office work environment to accommodate the growth of employee numbers throughout the year. To support the charity’s outreach development strategy, our current Belfast and Glasgow offices will undertake further expansion. We are also seeking office accommodation to support our regional growth into Manchester and Cardiff.

HMUK will continue to develop the talents of employees and volunteers to deliver the best support and services to musicians we support.

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FINANCIAL REVIEW |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Financial review The UK economic environment remains tough, as does the fundraising environment, particularly the ability to grow voluntary income. Trustees are therefore pleased to report that our finances have improved over the past year.

Total incoming resources for the year were £5.9 million (2016: £5.5 million), a 7.6% increase on 2016. This was due to significant increases in both legacy and investment income, increasing by 10.8% and 8.3% respectively. Legacies made up 50% of our income for the year (2016: 49%) and continue to be a crucial revenue stream.

Total expenditure, at £7.1 million, was 29% higher than the previous year’s £5.5 million. We spent £1.2 million on activities to raise funds, which is an increase of £338k from the £896k spent in 2016. The majority of this additional spend was invested in expanding the team and ensuring all necessary skills, competencies and expertise are in place to increase future voluntary income.

Designated funds – Agenda 2021 In 2016, Trustees agreed to ringfence £5.2 million unrestricted funds towards achieving the goals of Agenda 2021 including raising £21 million by 2021.

This was subsequently increased by £1.5 million in 2017 to give a total designated fund of £6.7 million. To date, the charity has spent £1.7 million of this fund progressing towards Agenda 2021, leaving a balance of £5 million at the end of the year.

Of the £1.1 million spent in 2017, £605k (53%) was used to expand the Creative Programme and launch the new funding programmes referred to earlier in this report (2016: £70k – 13%), £325k (28%) supplemented restricted funding to introduce Music Minds Matter and re-launch Musicians’ Hearing Health Scheme as shown in note 11 (2016: £111k – 20%), £98k (9%) kickstarted our presence in Northern Ireland (2016: £52k – 10%), and the remaining £117k (10%) covered the associated increase in salaries and overheads necessary to fulfil our strategic aims (2016: £312k – 57%).

Grants awarded in 2017, across both the Health & Welfare and Creative Programme, were nearly 40% higher in 2017 than they were in 2016. The Creative Programme more than doubled the amount awarded to musicians through the introduction of new programmes including the Transmission Fund, the Fusion Fund and the launch of the Jazz Promoters Fellowship. The Health & Welfare service increased its investment by 21% following the recent launch of the Music Minds Matter support line and the forthcoming re-launch of the Musicians’ Hearing Health Scheme.

2017 has been the first full year working towards our Agenda 2021 strategy and has presented many financial and operational changes. The charity has invested in its workforce, strengthening the Fundraising Team to raise £21 million by our Centenary and expanding across the regions to provide a nationwide service for our musicians we support. We have laid strong foundations for a dynamic, innovative charity that responds directly to the needs of our musicians and will continue to embed these going forward.

Net expenditure was £1.2 million before investment gains (2016: £46k). After accounting for investment gains of £5.5 million (2016: £7.4 million), the net surplus for 2017 was £4.3 million (2016: £7.3 million). This brought total reserves to £76.1 million (2016: £71.6 million).

In 2018, the charity will focus on diversifying its income streams by bringing to fruition the investment made in fundraising during 2017. This will reduce the charity’s reliance on legacy and investment income, both of which are unpredictable by nature, whilst stabilising the charity’s income base.

Grants awarded in 2017, across both the Health & Welfare and Creative Programmes, were nearly 40% higher in 2017 than they were in 2016.

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FINANCIAL REVIEW |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Key management personnel remuneration

Reserves

The Trustees consider the key management personnel of the charity to be the Board of Trustees, the Chief Executive and the Executive Team. The remuneration of the Chief Executive and the Executive Team is reviewed annually and set in accordance with average earnings to reflect any adjustment to the cost of living. The Remuneration Committee benchmarks against salary ranges in other charities using the midpoint of the salary offered for similar roles in similar charities. Trustees give their time freely. Details of Trustee expenses and related party transactions are disclosed in notes 6 and 14 to the accounts.

Since inception, nearly 100 years ago, the charity has built up a financial cushion to support our commitments to the musicians we help. Our obligations to musicians in need and their dependents cannot be switched on or off depending on changes to the financial climate and may expand even in a volatile economy. The charity must maintain sufficient resources for all financial weather.

It would be deeply damaging to the fulfilment of our charitable objects and strategy if we stopped helping musicians because markets have turned against us or we are faced with unexpected shortfalls.

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

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

Investment policy and performance Brewin Dolphin and Rathbones remain the charity’s two investment managers.

Both managers follow a similar remit and are measured against benchmarks and income targets with 50% of our investable money allocated to each.

In 2017, the investment portfolio yielded £2.3 million and exceeded the required income target of £2 million in the budget; representing an average income yield of 3.3% (2016: 3.2%). 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 0.81% in 2017 (2016: 0.77%). Capital gains on the portfolio this year was £5.5 million compared to £7.4 million in the previous year. The performance of the investment portfolio is scrutinised by the Finance and Audit Committee.

Welcome as they are, we cannot prudently rely upon legacy income because annual gifts fluctuate and cannot be predicted accurately. Whilst the investment portfolio at £60 million of unrestricted funds may be considered significant, with low yields on investments at present, to sustain net income of £1 million a year requires investment assets of £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.

The charity plans to award grants more than £4 million per annum by 2021. Investment income alone is therefore insufficient to meet the ongoing needs of musicians we support. As part of our current strategy, we hope to generate additional fundraised income to supplement our current income streams which cannot be relied upon with any degree of certainty to fund our level of anticipated activity.

Total group reserves as at 31 December 2017 were £76.1 million. This figure comprises: • £57.5 million of general reserves •£ 2.6 million of designated funds (made up of net book value of fixed assets) •£ 5 million of designated funds for Agenda 2021 (see below) •£ 11 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, £60 million are tied up in investments.

Since it’s inception nearly 100 years ago, the charity has built up a financial cushion to support our commitments to the musicians we help.

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PRINCIPAL RISKS AND UNCERTAINTIES |

Principal risks and uncertainties Management of the Strategic Risk Register is the responsibility of the Chief Executive and the Executive Team. The oversight of risk management lies with the Finance & Audit Committee which reports to the Board of Trustees. The Strategic Risk Register was reviewed and updated in December 2017, from which four broad categories of strategic risk were identified:

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

CATEGORY OF RISK

MITIGATION STRATEGY

EFFECTS OF MITIGATION

Failure to make a positive impact on beneficiaries

Continuous monitoring and reporting on impact.

Early identification of performance issues, enabling early corrective strategies.

Shortfall in available finance

Early identification of financial risks, enabling corrective strategies.

Regular review of the external environment, beneficiary needs and potential beneficiaries.

Early identification of strategic relationships for the donor pipeline.

Reputational damage caused by association with a third party or failure to deliver what we promise

All partnerships are now supported with formal agreements or contracts which clearly outline the charity’s expectations of partners, relevant KPIs and impact measures.

This tightening of agreements and clarity of expectations reduces the likelihood of reputational concerns.

The consequences of non-compliance are specific to each agreement and contract.

Failure to comply with regulatory requirements

Highly proactive approach to identifying all regulatory requirements, undertaking gap analyses and implementing recommendations.

Clear insight into compliance levels.

Improvement plans developed early.

Organisation-wide awareness and involvement.

2. F inancial risk – a shortfall in available finance.

4. F ailure to comply with any regulatory requirements.

As per the Charities Statement of Recommended Practice (SORP) HMUK analyses all risks and develops mitigation strategies for each one. The table opposite shows a summary of how this was undertaken.

External stakeholders will be able to access this data and interrogate it using a range of variables.

Quarterly monitoring, reporting and forecasting.

1. F ailure to make a positive impact on beneficiaries.

3. R eputational risk – reputational damage caused by association. with a third party or failure to deliver what we promise.

Establish an interactive, web-based platform displaying the charity’s activity and impact data.

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES |

Statement of Trustees’ responsibilities

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

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. This includes the strategic report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

• Observe the methods and principles in the Charities SORP. • Make judgments and accounting estimates that are reasonable and prudent.

•S tate whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

•P repare 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 disclose, with reasonable accuracy at any time, the financial position of the charitable company and ensures that the financial statements comply with the Companies Act 2006. Trustees are also responsible for safeguarding the assets of the charitable company and group, taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware: •T he charitable company’s auditor is aware of all relevant audit information.

•T he Trustees have taken all steps they ought to have taken to make themselves aware of any relevant audit information and to ensure that the auditors are aware of that information.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees’ annual report, which includes the strategic report, has been approved by the Trustees on 22 March 2018 and signed on their behalf by

Graham Sheffield CBE CHAIRMAN

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INDEPENDENT AUDITOR’S REPORT |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Independent auditor’s report OPINION We have audited the financial statements of Musicians Benevolent Fund for the year ended 31 December 2017 which comprise of the Consolidated Statement of Financial Activities, Consolidated Balance Sheet and the Charity Balance Sheet, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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.

In our opinion, the financial statements: • g ive a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 December 2017 and of the group’s and parent charitable company’s net movement in funds, including the income and expenditure, for the year then ended; • h ave been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • h ave been prepared in accordance with the requirements of the Companies Act 2006.

BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to

our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

RESPONSIBILITIES OF TRUSTEES FOR THE FINANCIAL STATEMENTS As explained more fully in the Trustees’ responsibilities statement set out on page 43, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group charitable company or to cease operations, or have no realistic alternative but to do so.

assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities This description forms part of our auditor’s report.

CONCLUSIONS RELATING TO GOING CONCERN We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: • t he Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • t he Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

OTHER INFORMATION The Trustees are responsible for the other information.

The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there

is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the work undertaken in the course of the audit: • t he 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 • t he Trustees’ Annual Report (which incorporates the strategic report and the directors’ report) has been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of the knowledge and understanding of the group and the parent 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).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: • a dequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or • t he parent charitable company financial statements are not in agreement with the accounting records and returns; or • c ertain disclosures of Trustees’ remuneration specified by law are not made; or •w e have not received all the information and explanations we require for our audit.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable

Anna Bennett (Senior Statutory Auditor) For and on behalf of haysmacintyre, Statutory Auditors 22 March 2018

10 Queen Street Place London EC4R 1AG

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SUMMARY |

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Summary Patron

Sub-committees of the Board of Trustees

HM The Queen

FINANCE & AUDIT COMMITTEE Sandeep Dwesar (Chairman), John Axon, Kathryn Langridge, Thomas Sharpe QC (Until 28 April 2017)

Members

Co-opted advisor: Alex Spofforth

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

NOMINATIONS COMMITTEE John Axon (Chairman), Martin Campbell-White MBE (Until 28 April 2017), Felicity Osmond

Trustees

REMUNERATIONS COMMITTEE

Graham Sheffield CBE...................... Chairman and Chairman of the Remuneration Committee

Graham Sheffield CBE (Chairman), John Axon, Sandeep Dwesar, Kathryn Langridge, Thomas Sharpe QC (Until 28 April 2017), David Williams

Sandeep Dwesar................................ Honorary Treasurer and Chairman of the Finance & Audit Committee

Co-opted advisor: Alex Spofforth

John Axon..............................................

Adrian Bradbury.................................. Until 28 April 2017 Martin Campbell-White MBE......... Until 28 April 2017

EXECUTIVE TEAM Richard Robinson.........Chief Executive Officer Christine Brown............Director of External Affairs

Judy Grahame...................................... Until 28 April 2017

Belinda Dee....................Director of Fundraising (since 14 August 2017)

Baroness Judith Jolly.........................

Claire Gevaux.................Creative Director

Kathryn Langridge............................

Kessington Ijegbai.......Director of Finance & Operations

Jonathan Morrish............................... Until 28 September 2017

Jonathon Inskip.............Director of Health & Welfare (until 31 August 2017)

Felicity Osmond..................................

Thomas Sharpe QC........................... Until 28 April 2017 Dr Jonathan Sheldon........................ Until 28 September 2017

Investment Managers

Alex Spofforth..................................... Co-opted 1 June 2017

Rathbone Brothers plc 1 Curzon Street, London W1J 5FB

Carolyn Ward........................................ Until 1 June 2017

Brewin Dolphin Ltd 12 Smithfield Street, London EC1A 9BD

David Williams.....................................

Suzi Williams........................................

Auditors haysmacintyre, Chartered Accountants 10 Queen Street Place, London EC4R 1AG

Solicitors IBB Solicitors Capital Court, 30 Windsor Street, Uxbridge UB8 1AB

Bankers HSBC Bank plc 117 Great Portland Street, London W1W 6QJ

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MUSICIANS BENEVOLENT FUND – CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES |

Consolidated Statement of Financial Activities

Balance sheets - as at 31 December 2017

(incorporating income & expenditure account) Year ended 31 December 2017

Company number 00252783 GROUP

Note

Unrestricted £’000

Restricted £’000

2017 Total £’000

3,298

157

3,455

3,220

1

-

1

-

2016 Total £’000

Note

2017 £’000

CHARITY 2016 £’000

2017 £’000

2016 £’000

FIXED ASSETS

INCOME FROM Donations and legacies Charitable activities

127

-

127

123

1,948

392

2,340

2,161

5,374

549

5,923

5,504

1,157

74

1,231

896

Health & Welfare

2,587

662

3,249

2,844

Creative programme

1,604

227

1,831

1,214

828

9

837

596

Other trading activities Investments TOTAL INCOME

49

| MUSICIANS BENEVOLENT FUND – BALANCE SHEETS - AS AT 31 DECEMBER 2017

2

7

2,631

2,676

2,631

2,676

Investments

8a

71,413

66,743

65,584

61,302

Social investments

8b

64

126

64

126

74,108

69,545

68,279

64,104

Tangible assets

TOTAL FIXED ASSETS CURRENT ASSETS Stock

EXPENDITURE ON Raising funds

Debtors: due within one year

9

Cash at bank and in hand

Charitable activities:

Raising awareness TOTAL EXPENDITURE

3

6,176

972

7,148

5,550

NET EXPENDITURE AND NET MOVEMENT IN FUNDS BEFORE TRANSFERS AND GAINS ON INVESTMENTS

5

(802)

(423)

(1,225)

(46)

Transfers between funds

(325)

325

-

-

Net gains on investments

4,652

894

5,546

7,365

NET MOVEMENT IN FUNDS

3,525

796

4,321

7,319

TOTAL CURRENT ASSETS

6

3

-

-

1,921

1,984

2,036

2,041

571

914

414

797

2,498

2,901

2,450

2,838

(686)

(827)

(1,224)

(1,220)

1,812

2,074

1,226

1,618

75,920

71,619

69,505

65,722

(28)

(48)

(28)

(48)

75,892

71,571

69,477

65,674

10,760

9,964

4,345

4,067

LIABILITIES Creditors: amounts falling due within one year

10

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

10

TOTAL NET ASSETS RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD

12

61,607

9,964

71,571

64,252

65,132

10,760

75,892

71,571

All transactions are derived from continuing activities. There were no other recognised gains or losses. Movements in funds are disclosed in note 11 and comparative figures are shown in notes 16-18.

FUNDS Restricted funds

11

Unrestricted funds:

11

Designated funds General funds Total unrestricted funds TOTAL CHARITY FUNDS

12

7,641

7,331

7,641

7,331

57,491

54,276

57,491

54,276

65,132

61,607

65,132

61,607

75,892

71,571

69,477

65,674

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 £3.8 million (2016: £6.6 million).

The notes on pages 51 - 64 form part of these financial statements. The financial statements were approved and authorised for issue by the Board of Trustees on 22 March 2018 and were signed below on its behalf by:

Graham Sheffield CBE Chairman

Sandeep Dwesar Honorary Treasurer

50

MUSICIANS BENEVOLENT FUND – CONSOLIDATED STATEMENT OF CASH FLOWS - YEAR ENDED 31 DECEMBER 2017 |

| MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017

Consolidated Statement of Cash Flows - year ended 31 December 2017

NET CASH USED IN OPERATING ACTIVITIES

1 Accounting policies

2017 £’000

2016 £’000

(3,499)

(4,180)

CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends

2,340

2,161

Purchase of equipment

(122)

(296)

11,646

14,408

(10,770)

(12,686)

62

172

3,156

3,759

(343)

(421)

Cash and cash equivalents brought forward

914

1,335

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

571

914

Proceeds from sale of investments Purchases of investments Movements on social investments NET CASH PROVIDED BY INVESTING ACTIVITIES Change in cash and cash equivalents in the year

2017 £’000

2016 £’000

4,321

7,319

167

131

Interest and dividends

(2,340)

(2,161)

Movement on investments

(5,546)

(8,948)

63

(957)

(161)

435

(3)

1

(3,499)

(4,180)

2017 £’000

2016 £’000

571

914

RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES Net movement in funds Depreciation

(Increase)/decrease in debtors Increase/(decrease) in creditors Decrease /(increase) in stock NET CASH USED IN OPERATING ACTIVITIES

CASH AT BANK

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

B) BASIS OF PREPARATION 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.

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 and its wholly owned trading subsidiary, MBF Trading Limited.

C) P UBLIC BENEFIT ENTITY Help Musicians UK meets the definition of a public benefit entity under FRS 102.

D) GOING CONCERN AND KEY JUDGEMENTS The Trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern.

The most significant areas of judgement that affect the charity's accounts are investment performance and accrued legacy income.

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

E) INCOME Income is recognised once the charity has entitlement to the funds, it is probable that income will be received and the amount can be measured reliably.

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

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

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

F) DONATIONS OF GIFTS, SERVICES AND FACILITIES Donated professional services are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of the economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

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.

G) EXPENDITURE Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: Raising funds includes direct fundraising costs and their associated support costs.

Charitable activities comprise grants given to individuals and organisations undertaken to further the purposes of the charity and their associated support costs.

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

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

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

51

52

MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017 |

1 Accounting policies (continued)

53

| MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017

2 Analysis of group income NOTE 11

J) ALLOCATION OF SUPPORT COSTS Support costs have been allocated between governance costs and other support costs. Governance activities comprise organisational administration and compliance with constitutional and statutory requirements.

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

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

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

Unrestricted £’000

Restricted £’000

Total 2017 £’000

Total 2016 £’000

2,873

107

2,980

2,690

425

47

472

525

Donations of professional services

-

3

3

4

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

CHARITABLE ACTIVITIES Fees

1

-

1

1

P) VAT

OTHER TRADING ACTIVITIES Trading income

69

-

69

73

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

Rental income

58

-

58

50

1,947

392

2,339

2,159

1

-

1

2

Q) DEBTORS

TOTAL INCOME

5,374

549

5,923

5,504

Total 2017 £’000

Total 2016 £’000

British Association for Performing Arts Medicine (BAPAM) National Opera Studio Scottish Music Information Centre Limited Serious Events Limited Young Classical Artists Trust Sound City (Liverpool) Limited Aldeburgh Music (Snape Maltings) Punch Records Oh Yeah Music Centre Spitalfields Festival Limited Higher Rhythm Ltd Brighter Sound Drake Music Philharmonia Limited Bristol Music Trust Manchester Jazz Festival National Youth Jazz Orchestra Gloucestershire Music Makers (The Music Works) Sound Festival Born to be Wide, Scotland English Folk Dance and Song Society Lancaster Jazz Festival London Sinfonietta London Philharmonic Orchestra South Bank Sinfonietta The Hub Arts Limited Northern Ireland internship programme (grants under £10k) Chamber Studio Cheltenham International Music Festival Hallé Orchestra Live Music Now London Symphony Orchestra Manchester Midday Concerts Society Music Business School Park Lane Group Royal Liverpool Philharmonic Sound and Music

180 40 40 40 40 40 40 39 37 33 30 29 25 20 19 18 15 13 13 13 10 10 9 8 7 6 25 -

180 5 6 5 5 5 20 25 20 5 30 5 25 10

TOTAL

799

346

with the carrying amount adjusted in subsequent years to reflect repayments and accrued interest. The loans were made on the premise that we would not be aiming to achieve a financial return and were made wholly to advance our charitable purposes.

O) STOCKS

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.

L) TANGIBLE FIXED ASSETS

R) CASH AT HAND AND IN BANK

Fixed assets are stated at cost 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.

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.

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 four years for the full year from when asset is brought into use Computer equipment four years for the full year from when asset is brought into use

M) 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.

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

N) SOCIAL INVESTMENTS These are concessionary loans made to beneficiaries secured on their property or other assets. Loans are repayable on the sale of the specified asset. The loans are recognised at the amount paid

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

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

U) PENSION SCHEME Help Musicians 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.

DONATIONS AND LEGACIES Legacies Donations

INVESTMENT INCOME Dividends Bank interest

3(a) Grants payable to organisations

54

MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017 |

3(b) Analysis of expenditure

55

| MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017

4 Staff costs

CHARITABLE ACTIVITIES Raising funds £’000

Health & Welfare £’000

Creative programme £’000

Raising awareness £’000

Support costs £’000

Governance costs £’000

2017 Total £’000

2016 Total £’000

368

440

214

261

567

100

1,950

1,365

Training and recruitment

30

18

2

2

58

3

113

121

Events

18

-

6

107

67

-

198

204

Staff costs

Publicity and advertising Operations Travel and subsistence Legal and professional fees Depreciation Other costs Crisis/continuing care INDIVIDUALS Wellbeing services Future professionals ORGANISATIONS Partnerships Creative grant programme

15

-

-

200

31

2

248

235

1

3

2

19

277

20

322

326

10

76

13

5

32

-

136

91

297

-

-

25

89

17

428

456

-

-

-

-

167

-

167

131

68

2

14

-

28

-

112

97

-

1,725

-

-

-

-

1,725

1,604

-

348

-

-

-

-

348

111

-

-

602

-

-

-

602

391

-

180

-

-

-

-

180

180

-

-

619

-

-

-

619

166

-

-

-

-

-

-

-

72

SUB TOTAL

807

2,792

1,472

619

1,316

142

7,148

5,550

Support and governance costs

424

457

359

218

(1,316)

(142)

-

-

1,231

3,249

1,831

837

-

-

7,148

5,550

Associated trusts

TOTAL

The charity has given £2.6m in grants to 3,206 individuals in 2017 (2016: £2.1m to 178) and £800k in grants to 33 organisations (2016: £400k to 17).

Salaries and wages Social Security costs Employer's contribution to defined contribution pensions scheme

Other employee benefits Related expenses Agency staff Self-employed fees

2017 £’000

2016 £’000

1,422

972

139

89

143

111

1,704

1,172

21

3

6

85

126

91

93

14

1,950

1,365

2017 £’000

2016 £’000

18

30

-

6

18

36

In addition, redundancy costs are analysed in the table below:

Redundancy payments Pension costs

The charity paid £17,500 in ex gratia termination payments as compensation for loss of employment. There were no related pension payments.

The number of employees whose emoluments for the year fell within the following bands were: 2017 No.

2016 No.

£60,001 - £70,000

2

-

£70,001 - £80,000

-

1

£80,001 - £90,000

1

-

Three employees earning more than £60,000 (2016: one) participated in the defined contribution pension scheme. Contributions of £22,000 were made during the year for these employees (2016: £8,000).

The key management personnel of the charity are the Chief Executive and the Executive team; aggregate remuneration and benefits for the key management personnel is £413,584 (2016: £361,299).

The average number of employees (head count based on number of staff employed) was: 2017 No.

2016 No.

Raising funds (fundraising)

7

6

Health & Welfare

8

5

Creative Programme

7

5

Raising awareness (communications)

8

5

Support (finance and operations)

9

7

Governance (secretariat)

2

2

41

30

TOTAL

56

MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017 |

5 Net expenditure for the year

57

| MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017

8a Investments 2017 £’000

GROUP

2016 £’000

This is stated after charging: Auditor's remuneration (excluding VAT): Audit Other services Depreciation

Fair value at the start of the year

CHARITY

2017 £’000

2016 £’000

2017 £’000

2016 £’000

65,088

59,445

59,782

54,602

17

23

1

24

Additions at cost

10,770

12,686

9,895

11,644

131

Disposal proceeds

(10,640)

(14,408)

(9,774)

(13,214)

5,765

6,351

5,281

5,832

167

Unrealised gains Realised gains

6 Trustee's remuneration and expenses

(219)

1,014

(195)

918

70,764

65,088

64,989

59,782

Cash held by investment managers

649

1,655

595

1,520

Fair value at the end of the year

71,413

66,743

65,584

61,302

Historical cost at the end of the year

53,369

51,422

50,091

49,118

None of the Trustees received remuneration during the year (2016: none).

Expenses totalling £657 (2016: £433) were reimbursed to three members of the Board of Trustees (2016: three). These payments relate mainly to travel costs. £20 was paid directly to third parties (2016: £nil).

INVESTMENTS COMPRISE: GROUP

UK investment funds

7 Tangible fixed assets - group and charity Freehold property £'000

Fixtures and fittings £’000

Work in progress £’000

Computer equipment £’000

Total £’000

2,380

652

249

396

3,677

Additions

-

78

-

44

122

Disposals

-

(151)

-

(175)

(326)

Transfers

-

249

(249)

-

-

2,380

828

-

265

3,473

At the end of the year

2016 £’000

2017 £’000

2016 £’000

68,851

63,280

63,051

57,949

-

-

25

25

1,908

1,803

1,908

1,803

5

5

5

5

649

1,655

595

1,520

71,413

66,743

65,584

61,302

UK unlisted shares Cash

COST At the start of the year

2017 £’000

UK investment in trading subsidiaries UK listed shares

CHARITY

8b Social investments GROUP

ACCUMULATED DEPRECIATION At the start of the year

98

531

-

372

1,001

Charge for year

46

98

-

23

167

-

(151)

-

(175)

(326)

144

478

-

220

842

Depreciation on disposals At the end of the year

CHARITY

2017 £’000

2016 £’000

2017 £’000

2016 £’000

64

126

64

126

Concessionary loans

8c Investments in trading subsidiaries

NET BOOK VALUE At the end of the year

2,236

350

-

45

2,631

At the start of the year

2,282

121

249

24

2,676

NAME OF SUBSIDIARY MBF Trading Ltd

HOLDING

PROPORTION OF VOTING RIGHTS

REGISTERED IN

INVESTMENT £'000

Ordinary shares

100%

England

25

Income from the trading subsidiary is received by way of Gift Aid. Please refer to note 13 for further details.

58

MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017 |

9 Debtors due within one year

59

| MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017

11 Movement in funds GROUP

Accrued legacy income Prepayments Current accounts with trading subsidiaries Other debtors TOTAL

CHARITY

2017 £’000

2016 £’000

2017 £’000

2016 £’000

1,810

1,887

1,810

1,887

29

20

29

20

Alan Fluck Memorial Fund

At 1 Jan 2017 £’000

Income £’000

Expenditure £’000

Gains £’000

Transfers £’000

At 31 Dec 2017 £’000

RESTRICTED FUNDS -

55

(183)

128

-

-

332

11

(1)

25

-

367

Ivor Newton Bequest

-

-

121

61

Jacquéline du Pré Special Fund

1,770

69

(123)

161

-

1,877

82

77

76

73

Ian Fleming Music Awards Fund

1,917

61

(76)

120

-

2,022

1,921

1,984

2,036

2,041

45

10 Creditors falling due within one year

Gwyneth Harrison Gift

48

-

(3)

-

-

Lord and Lady Lurgan Trust

-

3

(3)

-

-

-

Scotland

-

97

(63)

-

-

34

Musicians' Hearing Health Scheme

-

10

(301)

-

291

-

Music Minds Matter

-

16

(50)

-

34

-

4,067

322

(803)

434

325

4,345

Charity restricted funds GROUP

CHARITY

ASSOCIATED TRUSTS

2017 £’000

2016 £’000

2017 £’000

2016 £’000

324

11

(1)

25

-

359

36

137

22

112

Willis Grace Grant Trust

1,546

50

(56)

117

-

1,657

213

454

209

448

Sybil Tutton Charitable Trust

4,008

136

(77)

318

-

4,385

79

45

75

38

19

30

(35)

-

-

14

-

-

612

477

Grants payable

353

186

306

145

9,964

549

(972)

894

325

10,760

Other creditors

5

5

-

-

686

827

1,224

1,220

Designated (fixed assets)

2,676

122

(167)

-

-

2,631

Designated (Agenda 2021)

4,655

-

(820)

-

1,175

5,010

General funds

54,276

5,252

(5,189)

4,652

(1,500)

57,491

Unrestricted funds

61,607

5,374

(6,176)

4,652

(325)

65,132

Group total funds

71,571

5,923

(7,148)

5,546

-

75,892

Trade creditors Accruals Other taxes & social security Current accounts with associated trusts

CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR Rent deposit Grants payable

28

28

28

28

-

20

-

20

714

875

1,252

1,268

ANALYSIS OF GRANTS PAYABLE

Grants awarded in year Grants written back in the year Payments made in year Commitments as at 31 December 2017

GRANTS TO ORGANISATIONS

Crisis/continuing care £’000

Creative £’000

Creative £’000

BAPAM £’000

Associated trusts £’000

Group total £’000

-

150

16

-

40

206

1,725

552

619

180

-

3,076

-

(18)

-

-

-

(18)

(1,725)

(502)

(484)

(180)

(20)

(2,911)

-

182

151

-

20

353

2017

Financial assets measured at amortised cost and cash (a) Financial assets measured at fair value (b) Financial liabilities measured at amortised cost (c) Net financial assets measured at amortised cost

Marie Louise von Motesiczky Trust Group restricted funds

UNRESTRICTED FUNDS

NOTES TO RESTRICTED FUNDS GRANTS TO INDIVIDUALS

Commitments as at 1 January 2017

Miriam Licette Scholarship Fund

2016

Group £’000

Charity £’000

Group £’000

Charity £’000

2,498

2,450

2,878

2,818

71,477

65,648

66,869

61,248

(714)

(1,252)

(830)

(1,230)

73,261

66,846

68,917

62,836

(a) T he 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 and grants payable and amounts due to group undertakings.

• T he 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.

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

• T he Musicians' Hearing Health Scheme and Music Minds Matter funds are used towards both schemes: – Music Minds Matter offers a dedicated helpline for mental health support and a wider general front line health & welfare service.

– T he Musicians' Hearing Health Scheme is a scheme to give all musicians affordable access to specialist hearing assessments and bespoke hearing protection.

• T he Jacqueline du Pre Fund was established to enable MBF to care for musicians suffering from degenerative diseases by providing special facilities in their homes or helping with the costs of nursing care, accommodation or other needs.

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

• I an Fleming Music Awards Fund is grant from the Ian Fleming Charitable Trust. Income from the fund is for the advancement of musical education among young musicians with a view to developing their talent and increasing their knowledge and expertise.

• T he Sybil Tutton Charitable Trust provides financial assistance for young opera singers principally through awards.

• T he Gwyneth Harrison legacy is set aside to provide the accompanist’s prize of the Kathleen Ferrier Award annually for 20 years.

• T he Lord and Lady Lurgan Trust fund is to enable young professional musicians access to exceptional career development opportunities through our Creative Programme.

• T he Scotland fund is to be used for the benefit of Scottish musicians and to support the music industry and its needs in Scotland. This will involve the provision of a bespoke programme of support, advice and campaigns including Health & Welfare and career support grants.

• T he Willis & Grace Grant Trust was established to make grants and provide educational facilities for students aged 30 years and over.

• T he Marie Louise von Motesiczky Charitable Trust funds the Karl Motesiczky scholarships which will be offered to exceptionally talented postgraduate student cellists.

NOTES TO DESIGNATED FUNDS Fixed assets - This relates to the net book value of the office building.

Agenda 2021 - In 2016, £5.2m was designated to Agenda 2021 (current strategy) to fund a revised fundraising strategy and modernise the charity in order to generate £21 million of voluntary income and place the charity on a sustainable path. This was increased by £1.5m within the year to support new projects including Music Minds Matter and Musicians' Hearing Health Scheme. The transfer shown above is the additional £1.5m less £325k spent on these new services during 2017.

60

MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017 |

12 Analysis of group net assets between funds

61

| MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017

13 Results of trading subsidiary

Unrestricted funds £’000

Restricted funds £’000

Eliminate inter-fund £’000

2,631

-

-

2,631

59,646

11,767

-

71,413

Total funds £’000

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

FUND BALANCES AT 31 DECEMBER 2017 ARE REPRESENTED BY: Tangible fixed assets Investments Social investments Current assets Current liabilities

Creditors due after one year

-

-

64

795

(1,191)

2,498

Operating costs

(75)

(1,802)

1,191

(686)

Gift Aid donation

65,160

10,760

-

75,920

65,132

(28)

10,760

-

Current assets Current liabilities Investments £’000

Social investments £’000

Current assets £’000

Total liabilities £’000

Net assets £’000

Help Musicians UK

-

54,636

64

2,726

40

57,466

MBF Trading

-

-

-

168

(143)

25

UNRESTRICTED FUNDS

16

(14)

-

-

2017 £’000

2016 £’000

168

123

(143)

(98)

25

25

14 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

DESIGNATED FUNDS Agenda 2021

73 (60)

Share capital

Tangible fixed assets £’000

Fixed asset fund

69

THE ASSETS AND LIABILITIES OF THE SUBSIDIARY WERE:

75,892

ANALYSIS BY FUND

2016 £’000

(52)

Turnover

64 2,894

(28)

TOTAL NET ASSETS

2017 £’000

2,631

-

-

-

-

2,631

-

5,010

-

-

-

5,010

2,631

59,646

64

2,894

(103)

65,132

• RVW Trust, registered charity 1066977. Chairman, Hugh Cobbe Help Musicians UK provided office accommodation and services at the charity’s head office to these two musical charities until 2016. Help Musicians UK gave them a grant for the 2016 and 2017 to help offset their accommodation costs. £20,000 has been recorded in these accounts and shown under short term creditors (2016: £40,000).

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)

RESTRICTED FUNDS

• Sybil Tutton Charitable Trust (228089-16)

Ivor Newton Bequest

-

1,636

-

-

(1,636)

-

Alan Fluck Memorial Fund

-

326

-

41

-

367

Jacqueline Du Pré Special Fund

-

2,043

-

-

(166)

1,877

Gwyneth Harrison Gift

-

-

-

45

-

45

Ian Fleming Music Awards Fund

-

1,908

-

114

-

2,022

Miriam Licette Scholarship Fund

-

323

-

36

-

359

Willis & Grace Grant Trust

-

1,483

-

174

-

1,657

Sybil Tutton Charitable Trust

-

4,048

-

337

-

4,385

Marie-Louise von Motesiczky

-

-

-

14

-

14

Scotland

-

-

-

34

-

34

-

11,767

-

795

(1,802)

10,760

• Scottish Musicians Benevolent Fund (SCO12597) Aggregate donations received from Trustees during the year were £320 (2016: £1,710).

Reimbursements and emoluments are disclosed in note 6.

15 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 £142,913 (2016: £110,999). Included in other creditors is £29,142 (2016: £9,430) in respect of the pension scheme.

16 Operating lease commitments - group and charity The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Inter-fund accounts

-

-

-

(1,191)

1,191

EQUIPMENT

TOTAL

2,631

71,413

64

2,498

714

2017 £’000

2016 £’000

Less than one year

4

-

One to five years

7

-

11

-

75,892

The charity will receive £60,000 rent in the next year (2016: £56,000) and £132,000 in one to five years (2016: £192,000).

62

MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017 |

17 Consolidated Statement of Financial Activities (prior year)

18 - Movement in funds (prior year)

Unrestricted funds 2016 £’000

Restricted funds 2016 £’000

Total funds 2016 £’000

Donations and legacies

3,203

17

3,220

Other trading activities

123

-

123

Investments

1,795

366

2,161

TOTAL INCOME

5,121

383

5,504

INCOME FROM:

849

47

896

Charitable activities

4,040

614

4,654

TOTAL EXPENDITURE

4,889

661

5,550

Net movement in funds before gains on investments

At 1 Jan 2016 £'000

Income £’000

Expenditure £’000

Gains £’000

As at 31 Dec 2016 £’000

Ivor Newton Bequest

273

49

(494)

172

-

Alan Fluck Memorial Fund

289

10

(1)

34

332

Jacquéline du Pré Special Fund

1,500

64

(8)

214

1,770

Ian Fleming Music Awards Fund

1,706

67

(40)

184

1,917

RESTRICTED FUNDS

Gwyneth Harrison Gift

51

-

(3)

-

48

3,819

190

(546)

604

4,067

281

10

(1)

34

324

Willis Grace Grant Trust

1,366

44

(19)

155

1,546

Sybil Tutton Charitable Trust

3,552

122

(90)

424

4,008

7

17

(5)

-

19

9,025

383

(661)

1,217

9,964

2,511

296

(131)

-

2,676

-

-

(545)

5,200

4,655

General funds

52,716

4,776

(4,164)

948

54,276

Charity total – unrestricted funds

55,227

5,072

(4,840)

6,148

61,607

2,511

296

(131)

-

2,676

Charity total – restricted funds

EXPENDITURE ON: Raising funds

63

| MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017

232

(278)

(46)

Net gains on investments

6,148

1,217

7,365

Net movement in funds

6,380

939

7,319

Miriam Licette Scholarship Fund

Marie Louise von Motesiczky Trust Group total – restricted funds

UNRESTRICTED FUNDS Designated (fixed asset)

RECONCILIATION OF FUNDS Total funds brought forward

TOTAL FUNDS CARRIED FORWARD

55,227

61,607

9,025

9,964

64,252

71,571

Designated (Agenda 2021)

Designated (fixed asset) Designated (Agenda 2021)

-

-

(545)

5,200

4,655

General funds

52,716

4,825

(4,213)

948

54,276

Group total – unrestricted funds

55,227

5,121

(4,889)

6,148

61,607

64

MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017 |

19 Analysis of group net assets between funds (prior year) Unrestricted funds £’000

Restricted funds £’000

Eliminate inter-fund £’000

2,676

-

-

2,676

55,735

11,008

-

66,743

Total funds £’000

FUNDS AT 31 DECEMBER 2016 WERE REPRESENTED BY Tangible fixed assets Investments Social investments Current assets Current liabilities

Creditors due after one year

126

-

-

126

4,124

671

(1,894)

2,901

(1,006)

(1,715)

1,894

(827)

61,655

9,964

-

71,619

(48)

Total net assets

(48)

61,607

9,964

-

71,571

ANALYSIS BY FUND Tangible fixed assets £'000

Investments £'000

Social investments £’000

Current assets £’000

Total liabilities £’000

Net assets £’000

Help Musicians UK

-

51,080

126

4,061

(1,016)

54,251

MBF Trading

-

-

-

63

(38)

25

2,676

-

-

-

-

2,676

-

4,655

-

-

-

4,655

2,676

55,735

126

4,124

(1,054)

61,607

Ivor Newton Bequest

-

1,527

-

-

(1,527)

-

Alan Fluck Memorial Fund

-

305

-

27

-

332

Jacqueline Du Pré Special Fund

-

1,907

-

-

(137)

1,770

Gwyneth Harrison Gift

-

-

-

51

(3)

48

Ian Fleming Music Awards Fund

-

1,803

-

116

(2)

1,917

Marie-Louise von Motesiczky

-

-

-

33

(14)

19

Miriam Licette Scholarship Fund

-

302

-

22

-

324

Willis & Grace Grant Trust

-

1,384

-

173

(11)

1,546

Sybil Tutton Charitable Trust

-

3,780

-

249

(21)

4,008

-

11,008

-

671

(1,715)

9,964

-

-

-

(1,894)

1,894

-

2,676

66,743

126

2,901

(875)

71,571

UNRESTRICTED FUNDS

DESIGNATED FUNDS Fixed Asset Fund Agenda 2021

RESTRICTED FUNDS

INTER-FUND ACCOUNTS

TOTALS

65

@HelpMusiciansUK @HelpMusiciansUK @HelpMusiciansNI @HM_Scot helpmusicians.org.uk

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

MUSICIANS BENEVOLENT FUND (HELP MUSICIANS UK) 7 –11 Britannia Street, London WC1X 9JS. Registered Charity No. 228089

CHAIR GRAHAM SHEFFIELD CBE CHIEF EXECUTIVE RICHARD ROBINSON PATRON HM THE QUEEN