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| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017 1

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

ContentsChairman’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

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.



Graham Sheffield CBE CHAIRMAN

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.

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.

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.

Chairman’s message

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.

Chief Executive’smessage

Richard Robinson CHIEF EXECUTIVE

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

CHAIRMAN'S MESSAGE |

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TRUSTEE’S REPORT | TRUSTEES’ REPORT | 7| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Objects of the charity

INTRODUCTIONHelp 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.

OBJECTS OF THE CHARITY• To relieve poverty and financial hardship and to

advance education among:

(1) musicians.

(2) those persons (not being members of the association) who work or have worked in professions or occupations closely connected with music and who in the opinion of the association have rendered valuable service to music.

(3) the spouses, children and other dependants of those set out in (1) and (2) above.

• To advance musical education among musicians and members of the public.

STRUCTURE, GOVERNANCE AND MANAGEMENT OF THE CHARITYThe charity is comprised of:

• Members – There are 49 ‘members’ liable for £1 each.

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

• Sub-committees – These receive policy recommendations from the Executive Team. They often co-opt specialist advisors who support the charity’s work. There are three sub-committees:

– Finance and Audit Committee – Reviews budgeting, financial strategy, financial performance, audit, reporting and risk management.

– Nominations Committee – Recruits and appoints Trustees and co-opted advisors in collaboration with the Chief Executive. The committee meets as and when necessary.

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

• Advisory 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

Grant-making policy

HEALTH & WELFAREHelp 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. Financial assistance – Helps musicians in a wide variety of circumstances. However, as a benevolent fund, most musicians who approach the charity require financial assistance.

2. Advice 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. Visiting/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. Musicians' Hearing Health Scheme – This is a scheme to give all musicians affordable access to specialist hearing assessments and bespoke hearing protection.

5. Emerging 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 performance-related condition interrupts music studies or getting started in the music industry.

6. Music 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 PROGRAMMEThe 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.

Trustees’ report incorporating strategic report

6


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. Musicians 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. Musicians 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.

TRUSTEES' REPORT |

THE STRATEGIC PLAN: AGENDA 2021 | 10

The Strategic Plan: Agenda 2021Following 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.

Vision

A world where music thrives.

Mission

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

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:

• Making a difference

• Positivity

• Passion

• Trust

• Collaboration

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.

7 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.

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

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

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

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

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

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

15 All staff working at HMUK will be financially literate.

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

11| 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

Campaign

Innovate

Invest

Commit

THE STRATEGIC PLAN: AGENDA 2021 | 12 13

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.

The key achievements resulting from this expenditure are detailed throughout this report, and summarised in the points below:

• Health & 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.

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

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

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

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

• Direct 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.

ITEMS

Health & Welfare

Northern Ireland

Overheads

Creative Programme

Other grant-related costs

Staff costs

TOTAL

2017 (£'000)

325

98

45

605

72

–

1,145

2016 (£'000)

253

52

64

70

0

106

545

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

THE STRATEGIC PLAN: AGENDA 2021 | 14

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.

TOTAL IMPACT

14,117TOTAL IMPACT

6,529TOTAL IMPACT

2,375TOTAL IMPACT

2,552

2017ACTUAL

2016ACTUAL

2015ACTUAL

2014ACTUAL


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.

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.

HEALTH & WELFARE | 16

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.

2016 2017

6,000

5,000

4,000

3,000

2,000

1,000

0

1,935 £1,895

£2,072

4,766

Number of musicians paid Total value of payments (£’000)


Health & WelfareFollowing 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:

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

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

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.

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.

" 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

Health & Welfare payments

HEALTH & WELFARE | | ANNUAL REPORT AND FINANCIAL STATEMENTS 2017 1918

Medical Assessments

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.

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.

Music Minds Matter

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).

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.

20 CREATIVE PROGRAMME |

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.

2016 2017

1200

1400

1000

800

600

400

200

0

195

£557

£1,171

256

Number of awards given Total value of awards (£’000)

Creative Programme


Photography: Mike Sewell


1 The 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 Professional 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 The 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 HMUK 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 Nations 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.

Plans for 2018

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

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

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

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

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

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

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

Five strands of activity

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:

22 CREATIVE PROGRAMME |

COMMUNICATIONS | | ANNUAL REPORT AND FINANCIAL STATEMENTS 2017 2524

1

A Help Musicians UK report based on a commissioned University of Westminster study

Can Music Make You Sick?Final Report and RecommendationsCampaigning

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.

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

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.

Full report at musicmindsmatter.org.uk

Communications

COMMUNICATIONS | | ANNUAL REPORT AND FINANCIAL STATEMENTS 2017 2726

Impact on social media

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

Email campaigns

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.

Facebook page likes

2016

Twitter followers

2017

YouTube video views

1,516

15,000

20,000

25,000

10,000

5,000

4,165

71

16,986

31

6,504

46

21,271

49

4,337

2016

2017

No. email campaigns

Average open rate (%)

0

30

60

40

70

50

80

20

10

0

Partnerships

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.

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.

Plans for 2018

THE COMMUNICATIONS & PARTNERSHIPS TEAM WILL FOCUS ON:

• Launching the charity’s refreshed brand.

• Adding new executive projects and business development structures.

• Developing a robust partnership framework.

• Continuing 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.

• Relaunch #HearForMusicians in early 2018.

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

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

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

28 29FUNDRAISING |

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.

• Legacy income was almost £3 million.

• Appointment 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.

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

– Marsh 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.

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

Plans for 2018

• Through its first fundraising appeal, the charity will establish its core proposition in line with the rebrand, reflecting HMUK’s vision, mission and strategic goals.

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

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

• The 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.

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

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

• The GDPR deadline (May 2018) will be met for obtaining donors’ consent for their details to be retained by the charity.

Fundraising

| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

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.


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

• Appointment of a Northern Ireland Development Manager.

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

• Through partnerships, Help Musicians Northern Ireland (HMNI) created events and increased the profile and awareness of its work in the region whilst maximising opportunities to support the health, wellbeing and creative opportunities of local musicians.

• Through its partnership with Music Venue Trust, HMNI now has 16 music venues participating in the Music Venue Alliance operating across NI, not just Belfast.

• HMNI has brought Independent Venue Week to the region through its partnership with local organisations.

• Culture 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.

• Stendhal 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.

• HMNI formed a partnership with Women’s Work, facilitating its desire to support and empower women in the music industry.

• The charity’s Health & Welfare service now directly supports 17 musicians in NI, compared to the four musicians supported prior to the establishment of the HMNI office.

• HMNI has had discussions, interviews and mentions on regionally-based radio and print outlets such as Chordblossom, The Thin Air, Culture Northern Ireland, Belfast Telegraph, BBC – Across The Line, Q Radio, Blast106.4fm and Complete Music Update’s Setlist Podcast.

• HMNI established its own Facebook and Twitter.

Plans for Northern Ireland 2018

• Continue to raise the profile of the charity across the region whilst refining and promoting its key messages.

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

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

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

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

2016

2018

Regional activityOverview

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.

30 REGIONAL ACTIVITY |

REGIONAL ACTIVITY | 32

Achievements in Scotland 2017

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

• This Scotland Director attended a panel discussion in Aberdeen with 57 Degrees North, Scottish Music Industry Association and Creative Scotland. The Scotland Director also joined the judging panel for the 2017 Scottish Album of the Year awards, and HMUK became the official charity partner for the awards.

• Roundtable discussions were held with over 100 artists, industry professionals and organisations representing the music sector.

• Supported the New Music Performer of the Year category at the Scottish Awards for New Music.

• The Creative Programme offered 50 bursaries to the Wide Days music convention in Edinburgh to ensure access to networking and professional development opportunities for people who couldn’t otherwise afford to attend.

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

• HM Scotland hosted a stand at XpoNorth in Inverness, the industry conference and showcase event in the Highlands.

• A Development Officer was appointed to the HM Scotland office in June 2017 and attended the Dumfries Music Conference to speak on a panel about HMUK funding.

• Secured space for the HM Scotland office in the Scottish Music Centre in Glasgow.

• Following consultation with the sector, HM Scotland created ‘HM Fusion’, a new open application programme enabling creative collaborations.

• HMUK offered 50 musician bursaries to the Resonate industry conference in Glasgow for artists and industry professionals who couldn’t otherwise afford to attend.

Plans for Scotland 2018

• HM Scotland office established in Glasgow.

• Three newly-created posts will be appointed in the HM Scotland office. These will include a Development Manager, a Volunteer & Fundraising Officer and a Programmes & Outreach Officer. A part-time Music Liaison role will also be created in 2018.

• HM Scotland will publicly launch on 1 February 2018, with a major campaign, Rooted In Scotland, which will celebrate the permanent presence of HM Scotland throughout the nation.

• Partnership with Scottish Music Industry Association.

• New funding programmes bespoke for Scotland.

• The Musicians’ Hearing Health Scheme will further expand into Scotland.

• Music Minds Matter will continue to be available to people working in the music industry will further expand in Scotland.


Photography: Ciara McMullan

OPERATIONS | | ANNUAL REPORT AND FINANCIAL STATEMENTS 2017 3534

OperationsHuman 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.

FINANCIAL REVIEW | 36

Financial reviewThe 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.

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.


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%).

FINANCIAL REVIEW | 38 39| ANNUAL REPORT AND FINANCIAL STATEMENTS 2017

Key management personnel remuneration

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.

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.

Reserves

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.

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.

Principal risks and uncertaintiesManagement 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:

1. Failure to make a positive impact on beneficiaries.

2. Financial risk – a shortfall in available finance.

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

4. Failure 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.

41| ANNUAL REPORT AND FINANCIAL STATEMENTS 201740 PRINCIPAL RISKS AND UNCERTAINTIES |

Failure to make a positive impact on beneficiaries

Continuous monitoring and reporting on impact.

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

Early identification of performance issues, enabling early corrective strategies.

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

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.

Shortfall in available finance

Quarterly monitoring, reporting and forecasting.

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

Early identification of financial risks, enabling corrective strategies.

Early identification of strategic relationships for the donor pipeline.

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.

EFFECTS OF MITIGATION

MITIGATION STRATEGY

CATEGORY OF RISK


Statement of Trustees’ responsibilities

Trustees, who are also Directors of the Musicians Benevolent Fund (the legal name of Help Musicians UK) for the purposes of company law, are responsible for preparing the Trustees’ report. 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.

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

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.

The Trustees are responsible for keeping adequate accounting records that 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:

• The charitable company’s auditor is aware of all relevant audit information.

• The 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 CBECHAIRMAN

42 STATEMENT OF TRUSTEES’ RESPONSIBILITIES |

INDEPENDENT AUDITOR’S REPORT | | ANNUAL REPORT AND FINANCIAL STATEMENTS 2017 4544

Independent auditor’s reportOPINIONWe 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:

• give 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;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

BASIS FOR OPINIONWe 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 REPORTThis 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 STATEMENTSAs 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.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTSOur 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

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 CONCERNWe have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the 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 INFORMATIONThe 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 2006In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report) has been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTIONIn 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:

• adequate 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

• the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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

22 March 2018

10 Queen Street Place London EC4R 1AG

SUMMARY | | ANNUAL REPORT AND FINANCIAL STATEMENTS 201746

Summary

Patron

HM The Queen

Members

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

Trustees

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

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

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

Adrian Bradbury ................................. Until 28 April 2017

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

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

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

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

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

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

Thomas Sharpe QC .......................... Until 28 April 2017

Dr Jonathan Sheldon ....................... Until 28 September 2017

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

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

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

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

Sub-committees of the Board of Trustees

FINANCE & AUDIT COMMITTEE

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

Co-opted advisor: Alex Spofforth

NOMINATIONS COMMITTEE

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

REMUNERATIONS COMMITTEE

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

Co-opted advisor: Alex Spofforth

EXECUTIVE TEAM

Richard Robinson ........Chief Executive Officer

Christine Brown ...........Director of External Affairs

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

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

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

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

Investment Managers

Rathbone Brothers plc 1 Curzon Street, London W1J 5FB

Brewin Dolphin Ltd 12 Smithfield Street, London EC1A 9BD

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

47

MUSICIANS BENEVOLENT FUND – CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES | | MUSICIANS BENEVOLENT FUND – BALANCE SHEETS - AS AT 31 DECEMBER 2017 4948

Consolidated Statement of Financial Activities Balance sheets - as at 31 December 2017

NoteUnrestricted

£’000Restricted

£’000

2017 Total

£’000

2016 Total£’000

INCOME FROM

Donations and legacies 3,298 157 3,455 3,220

Charitable activities 1 - 1 -

Other trading activities 127 - 127 123

Investments 1,948 392 2,340 2,161

TOTAL INCOME 2 5,374 549 5,923 5,504

EXPENDITURE ON

Raising funds 1,157 74 1,231 896

Charitable activities:

Health & Welfare 2,587 662 3,249 2,844

Creative programme 1,604 227 1,831 1,214

Raising awareness 828 9 837 596

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

RECONCILIATION OF FUNDS

Total funds brought forward 61,607 9,964 71,571 64,252

TOTAL FUNDS CARRIED FORWARD 12 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.

GROUP CHARITY

Note2017

£’0002016 £’000

2017 £’000

2016 £’000

FIXED ASSETS

Tangible assets 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

TOTAL FIXED ASSETS 74,108 69,545 68,279 64,104

CURRENT ASSETS

Stock 6 3 - -

Debtors: due within one year 9 1,921 1,984 2,036 2,041

Cash at bank and in hand 571 914 414 797

TOTAL CURRENT ASSETS 2,498 2,901 2,450 2,838

LIABILITIES

Creditors: amounts falling due within one year 10 (686) (827) (1,224) (1,220)

NET CURRENT ASSETS 1,812 2,074 1,226 1,618

TOTAL ASSETS LESS CURRENT LIABILITIES 75,920 71,619 69,505 65,722

Creditors: amounts falling due after more than one year 10 (28) (48) (28) (48)

TOTAL NET ASSETS 75,892 71,571 69,477 65,674

FUNDS

Restricted funds 11 10,760 9,964 4,345 4,067

Unrestricted funds: 11

Designated funds 7,641 7,331 7,641 7,331

General funds 57,491 54,276 57,491 54,276

Total unrestricted funds 65,132 61,607 65,132 61,607

TOTAL CHARITY FUNDS 12 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 CBEChairman

Sandeep DwesarHonorary Treasurer

Company number 00252783(incorporating income & expenditure account)

Year ended 31 December 2017

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 5150

Consolidated Statement of Cash Flows - year ended 31 December 2017 1 Accounting policies

2017 £’000

2016 £’000

NET CASH USED IN OPERATING ACTIVITIES (3,499) (4,180)

CASH FLOWS FROM INVESTING ACTIVITIES

Interest and dividends 2,340 2,161

Purchase of equipment (122) (296)

Proceeds from sale of investments 11,646 14,408

Purchases of investments (10,770) (12,686)

Movements on social investments 62 172

NET CASH PROVIDED BY INVESTING ACTIVITIES 3,156 3,759

Change in cash and cash equivalents in the year (343) (421)

Cash and cash equivalents brought forward 914 1,335

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 571 914

RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2017 £’000

2016 £’000

Net movement in funds 4,321 7,319

Depreciation 167 131

Interest and dividends (2,340) (2,161)

Movement on investments (5,546) (8,948)

(Increase)/decrease in debtors 63 (957)

Increase/(decrease) in creditors (161) 435

Decrease /(increase) in stock (3) 1

NET CASH USED IN OPERATING ACTIVITIES (3,499) (4,180)

2017 £’000

2016 £’000

CASH AT BANK 571 914

A) STATUTORY 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) PUBLIC 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.

MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017 | | MUSICIANS BENEVOLENT FUND – NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2017 5352

1 Accounting policies (continued) 2 Analysis of group income

3(a) Grants payable to organisations

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.

L) TANGIBLE FIXED ASSETS

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.

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

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

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

P) VAT

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

Q) DEBTORS

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

R) CASH AT HAND AND IN BANK

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

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.

NOTE 11

Unrestricted £’000

Restricted £’000

Total 2017 £’000

Total 2016 £’000

DONATIONS AND LEGACIESLegacies 2,873 107 2,980 2,690

Donations 425 47 472 525

Donations of professional services - 3 3 4

CHARITABLE ACTIVITIESFees 1 - 1 1

OTHER TRADING ACTIVITIESTrading income 69 - 69 73

Rental income 58 - 58 50

INVESTMENT INCOMEDividends 1,947 392 2,339 2,159

Bank interest 1 - 1 2

TOTAL INCOME 5,374 549 5,923 5,504

Total 2017 £’000

Total 2016 £’000

British Association for Performing Arts Medicine (BAPAM) 180 180

National Opera Studio 40 -

Scottish Music Information Centre Limited 40 -

Serious Events Limited 40 -

Young Classical Artists Trust 40 5

Sound City (Liverpool) Limited 40 -

Aldeburgh Music (Snape Maltings) 40 6

Punch Records 39 -

Oh Yeah Music Centre 37 -

Spitalfields Festival Limited 33 -

Higher Rhythm Ltd 30 -

Brighter Sound 29 -

Drake Music 25 -

Philharmonia Limited 20 -

Bristol Music Trust 19 -

Manchester Jazz Festival 18 -

National Youth Jazz Orchestra 15 5

Gloucestershire Music Makers (The Music Works) 13 -

Sound Festival 13 -

Born to be Wide, Scotland 13 -

English Folk Dance and Song Society 10 -

Lancaster Jazz Festival 10 -

London Sinfonietta 9 -

London Philharmonic Orchestra 8 -

South Bank Sinfonietta 7 -

The Hub Arts Limited 6 -

Northern Ireland internship programme (grants under £10k) 25 -

Chamber Studio - 5

Cheltenham International Music Festival - 5

Hallé Orchestra - 20

Live Music Now - 25

London Symphony Orchestra - 20

Manchester Midday Concerts Society - 5

Music Business School - 30

Park Lane Group - 5

Royal Liverpool Philharmonic - 25 Sound and Music - 10

TOTAL 799 346


3(b) Analysis of expenditure 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

Staff costs 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

Publicity and advertising 15 - - 200 31 2 248 235

Operations 1 3 2 19 277 20 322 326

Travel and subsistence 10 76 13 5 32 - 136 91

Legal and professional fees 297 - - 25 89 17 428 456

Depreciation - - - - 167 - 167 131

Other costs 68 2 14 - 28 - 112 97

Crisis/continuing care - 1,725 - - - - 1,725 1,604

INDIVIDUALSWellbeing services - 348 - - - - 348 111

Future professionals - - 602 - - - 602 391

ORGANISATIONSPartnerships - 180 - - - - 180 180

Creative grant programme - - 619 - - - 619 166

Associated trusts - - - - - - - 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) - -

TOTAL 1,231 3,249 1,831 837 - - 7,148 5,550

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).

2017 £’000

2016 £’000

Salaries and wages 1,422 972

Social Security costs 139 89

Employer's contribution to defined contribution pensions scheme 143 111

1,704 1,172

Other employee benefits 21 3

Related expenses 6 85

Agency staff 126 91

Self-employed fees 93 14

1,950 1,365

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

2017 £’000

2016 £’000

Redundancy payments 18 30

Pension costs - 6

18 36

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

TOTAL 41 30


5 Net expenditure for the year

6 Trustee's remuneration and expenses

7 Tangible fixed assets - group and charity

8a Investments

8b Social investments

8c Investments in trading subsidiaries

2017 £’000

2016 £’000

This is stated after charging:

Auditor's remuneration (excluding VAT):

Audit 17 23

Other services 1 24

Depreciation 167 131

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).

Freehold property

£'000

Fixtures and fittings

£’000

Work in progress

£’000

Computer equipment

£’000Total

£’000

COST

At the start of the year 2,380 652 249 396 3,677

Additions - 78 - 44 122

Disposals - (151) - (175) (326)

Transfers - 249 (249) - -

At the end of the year 2,380 828 - 265 3,473

ACCUMULATED DEPRECIATION

At the start of the year 98 531 - 372 1,001

Charge for year 46 98 - 23 167

Depreciation on disposals - (151) - (175) (326)

At the end of the year 144 478 - 220 842

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

GROUP CHARITY

2017£’000

2016£’000

2017£’000

2016£’000

Fair value at the start of the year 65,088 59,445 59,782 54,602

Additions at cost 10,770 12,686 9,895 11,644

Disposal proceeds (10,640) (14,408) (9,774) (13,214)

Unrealised gains 5,765 6,351 5,281 5,832

Realised gains (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

INVESTMENTS COMPRISE:

GROUP CHARITY

2017£’000

2016£’000

2017£’000

2016£’000

UK investment funds 68,851 63,280 63,051 57,949

UK investment in trading subsidiaries - - 25 25

UK listed shares 1,908 1,803 1,908 1,803

UK unlisted shares 5 5 5 5

Cash 649 1,655 595 1,520

71,413 66,743 65,584 61,302

GROUP CHARITY

2017£’000

2016£’000

2017£’000

2016£’000

Concessionary loans 64 126 64 126

NAME OF SUBSIDIARY HOLDINGPROPORTION OF VOTING RIGHTS

REGISTERED ININVESTMENT

£'000

MBF Trading Ltd 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.


9 Debtors due within one year

10 Creditors falling due within one year

11 Movement in funds

GROUP CHARITY

2017£’000

2016£’000

2017 £’000

2016 £’000

Accrued legacy income 1,810 1,887 1,810 1,887

Prepayments 29 20 29 20

Current accounts with trading subsidiaries - - 121 61

Other debtors 82 77 76 73

TOTAL 1,921 1,984 2,036 2,041

2017 2016

Group£’000

Charity£’000

Group £’000

Charity £’000

Financial assets measured at amortised cost and cash (a) 2,498 2,450 2,878 2,818

Financial assets measured at fair value (b) 71,477 65,648 66,869 61,248

Financial liabilities measured at amortised cost (c) (714) (1,252) (830) (1,230)

Net financial assets measured at amortised cost 73,261 66,846 68,917 62,836

GROUP CHARITY

2017£’000

2016£’000

2017 £’000

2016 £’000

Trade creditors 36 137 22 112

Accruals 213 454 209 448

Other taxes & social security 79 45 75 38

Current accounts with associated trusts - - 612 477

Grants payable 353 186 306 145

Other creditors 5 5 - -

686 827 1,224 1,220

ANALYSIS OF GRANTS PAYABLE

GRANTS TO INDIVIDUALS GRANTS TO ORGANISATIONS

Crisis/continuing care

£’000Creative

£’000Creative

£’000BAPAM

£’000

Associated trusts £’000

Group total

£’000

Commitments as at 1 January 2017 - 150 16 - 40 206

Grants awarded in year 1,725 552 619 180 - 3,076

Grants written back in the year - (18) - - - (18)

Payments made in year (1,725) (502) (484) (180) (20) (2,911)

Commitments as at 31 December 2017 - 182 151 - 20 353

At 1 Jan 2017£’000

Income£’000

Expenditure£’000

Gains£’000

Transfers £’000

At 31 Dec 2017

£’000

RESTRICTED FUNDS

Ivor Newton Bequest - 55 (183) 128 - -

Alan Fluck Memorial Fund 332 11 (1) 25 - 367

Jacquéline du Pré Special Fund 1,770 69 (123) 161 - 1,877

Ian Fleming Music Awards Fund 1,917 61 (76) 120 - 2,022

Gwyneth Harrison Gift 48 - (3) - - 45

Lord and Lady Lurgan Trust - 3 (3) - - -

Scotland - 97 (63) - - 34

Musicians' Hearing Health Scheme - 10 (301) - 291 -

Music Minds Matter - 16 (50) - 34 -

Charity restricted funds 4,067 322 (803) 434 325 4,345

ASSOCIATED TRUSTS

Miriam Licette Scholarship Fund 324 11 (1) 25 - 359

Willis Grace Grant Trust 1,546 50 (56) 117 - 1,657

Sybil Tutton Charitable Trust 4,008 136 (77) 318 - 4,385

Marie Louise von Motesiczky Trust 19 30 (35) - - 14

Group restricted funds 9,964 549 (972) 894 325 10,760

UNRESTRICTED FUNDS

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

CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR

Rent deposit 28 28 28 28

Grants payable - 20 - 20

714 875 1,252 1,268

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

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

NOTES TO RESTRICTED FUNDS

• The Ivor Newton Bequest is used for the relief of poverty and financial hardship of older musicians who need substantial support to enable them to enjoy an adequate quality of life, live independently or access the care they require.

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

• The 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.

• Ian 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.

• The Gwyneth Harrison legacy is set aside to provide the accompanist’s prize of the Kathleen Ferrier Award annually for 20 years.

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

• The 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.

• The 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.

– The Musicians' Hearing Health Scheme is a scheme to give all musicians affordable access to specialist hearing assessments and bespoke hearing protection.

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

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

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

• The 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.


12 Analysis of group net assets between funds 13 Results of trading subsidiary

14 Related party transactions

15 Pension scheme

16 Operating lease commitments - group and charity

Unrestricted funds £’000

Restricted funds £’000

Eliminate inter-fund

£’000Total funds

£’000

FUND BALANCES AT 31 DECEMBER 2017 ARE REPRESENTED BY:

Tangible fixed assets 2,631 - - 2,631

Investments 59,646 11,767 - 71,413

Social investments 64 - - 64

Current assets 2,894 795 (1,191) 2,498

Current liabilities (75) (1,802) 1,191 (686)

65,160 10,760 - 75,920

Creditors due after one year (28) (28)

TOTAL NET ASSETS 65,132 10,760 - 75,892

2017 £’000

2016£’000

Turnover 69 73

Operating costs (52) (60)

Gift Aid donation 16 (14)

- -

THE ASSETS AND LIABILITIES OF THE SUBSIDIARY WERE:

2017 £’000

2016£’000

Current assets 168 123

Current liabilities (143) (98)

Share capital 25 25

EQUIPMENT

2017 £’000

2016£’000

Less than one year 4 -

One to five years 7 -

11 -

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).

ANALYSIS BY FUND

Tangible fixed assets

£’000Investments

£’000

Social investments

£’000

Current assets

£’000

Total liabilities

£’000Net assets

£’000

UNRESTRICTED FUNDS

Help Musicians UK - 54,636 64 2,726 40 57,466

MBF Trading - - - 168 (143) 25

DESIGNATED FUNDS

Fixed asset fund 2,631 - - - - 2,631

Agenda 2021 - 5,010 - - - 5,010

2,631 59,646 64 2,894 (103) 65,132

RESTRICTED FUNDS

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

Inter-fund accounts - - - (1,191) 1,191 -

TOTAL 2,631 71,413 64 2,498 714 75,892

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:

The charity is a Trustee, with others, of two charities having independent advisory committees:

• The Delius Trust, registered charity 207324. Chairman, David Lloyd-Jones

• RVW Trust, registered charity 1066977. Chairman, Hugh Cobbe

Help Musicians UK 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)

• Sybil Tutton Charitable Trust (228089-16)

• 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.

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.

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


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

INCOME FROM:

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

EXPENDITURE ON:

Raising funds 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 232 (278) (46)

Net gains on investments 6,148 1,217 7,365

Net movement in funds 6,380 939 7,319

RECONCILIATION OF FUNDS

Total funds brought forward 55,227 9,025 64,252

TOTAL FUNDS CARRIED FORWARD 61,607 9,964 71,571

At 1 Jan 2016£'000

Income£’000

Expenditure£’000

Gains£’000

As at 31 Dec 2016£’000

RESTRICTED FUNDS

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

Gwyneth Harrison Gift 51 - (3) - 48

Charity total – restricted funds 3,819 190 (546) 604 4,067

Miriam Licette Scholarship Fund 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

Marie Louise von Motesiczky Trust 7 17 (5) - 19

Group total – restricted funds 9,025 383 (661) 1,217 9,964

UNRESTRICTED FUNDS

Designated (fixed asset) 2,511 296 (131) - 2,676

Designated (Agenda 2021) - - (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

Designated (fixed asset) 2,511 296 (131) - 2,676

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 |

Unrestricted funds£’000

Restricted funds£’000

Eliminate inter-fund

£’000Total funds

£’000

FUNDS AT 31 DECEMBER 2016 WERE REPRESENTED BY

Tangible fixed assets 2,676 - - 2,676

Investments 55,735 11,008 - 66,743

Social investments 126 - - 126

Current assets 4,124 671 (1,894) 2,901

Current liabilities (1,006) (1,715) 1,894 (827)

61,655 9,964 - 71,619

Creditors due after one year (48) (48)

Total net assets 61,607 9,964 - 71,571

ANALYSIS BY FUND

Tangible fixed assets£'000

Investments£'000

Social investments

£’000

Current assets£’000

Total liabilities

£’000Net assets

£’000

UNRESTRICTED FUNDS

Help Musicians UK - 51,080 126 4,061 (1,016) 54,251

MBF Trading - - - 63 (38) 25

DESIGNATED FUNDS

Fixed Asset Fund 2,676 - - - - 2,676

Agenda 2021 - 4,655 - - - 4,655

2,676 55,735 126 4,124 (1,054) 61,607

RESTRICTED FUNDS

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

INTER-FUND ACCOUNTS - - - (1,894) 1,894 -

TOTALS 2,676 66,743 126 2,901 (875) 71,571

19 Analysis of group net assets between funds (prior year)

65

@HelpMusiciansUK

@HelpMusiciansUK @HelpMusiciansNI@HM_Scot


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020 7239 9100

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MUSICIANS BENEVOLENT FUND(HELP MUSICIANS UK)

7 –11 Britannia Street, London WC1X 9JS.

Registered Charity No. 228089

CHAIR GRAHAM SHEFFIELD CBECHIEF EXECUTIVE RICHARD ROBINSON

PATRON HM THE QUEEN

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