Tasmanian Symphony Orchestra Foundation Ltd

TSO Foundation Trust

I have pleasure in presenting the Foundation’s Annual Report for 2017.

The TSO Foundation Trust was established in 2008 to build and manage an endowment fund to assist the long term financial security of the Tasmanian Symphony Orchestra. Funds earned by the Trust are distributed annually to the TSO operating fund. In 2017 the Trust distributed $51,437 to the Tasmanian Symphony Orchestra.

The Trust is managed by a corporate trustee, TSO Foundation Ltd, which looks after Trust funds. The Trust is managed by an independent board of honorary directors (listed below), supported by a Board  Audit and Risk committee. During 2017 three founding directors retired, Michael Ralston, John Upcher and John Canterford. Two new directors were welcomed to the board, Janice Foster and Josef Giedl.

The Trust and the Foundation are independently audited on a pro-bono basis by Deloitte. Independent investment and portfolio advice is provided by Unica Wealth.

Trust assets were progressively invested during the year so that as at 31 December 2017, $1,144,743, (79% of Trust assets of $1,455,887), were held as investments.

The Trust earns income from donations, investments and bequests. Revenue for the year was $229,889. Investment income was $119,485, a return of 10.7% on funds invested for the year in a buoyant investment market and more than three times the return earned in 2016 from bank deposits.

Donation income for 2017 was $107,957, about half that of 2016. Donors are listed in TSO programs and on the TSO Foundation website.

The Foundation recognises the generosity of those who make a future bequest by acknowledging their names in concert programs and on the TSO website. Additionally, for bequests of $10,000 or more, donors are invited to join the Sculthorpe Society, an esteemed group of benefactors who receive invitations to special events and social gatherings. At a function on 27 April 2017, members celebrated the anniversary of Peter Sculthorpe’s birthday. Thanks to the members of the Sculthorpe Society. Your support and commitment to the Foundation is vital to the TSO’s role and future. At December 2017, the Foundation gratefully acknowledges 18 notified bequests.

Net profit for 2017 was $213,117, around 20% less than in 2016, with the increase in investment income offset by lower donations.

Thanks to Nicholas Heyward and TSO management for their strong support to the Foundation. Special thanks to Ed Benyon, Director Development.

Let’s make 2018 a year to remember! There’s still a way to go to reach the Foundation’s long term target of a $20 million fund.

Dick Shoobridge
Chair
TSO FOUNDATION TRUST LTD
4 June 2018

For a full copy of the 2017 Annual Financial Report of the TSO Foundation Trust, please click here.

Financial Summary

Financial Summary
Revenue 2014 2015 2016 2017
Donations $75,850 $37,590 $219,620 $107,957
Bequests $0 $300,000 $27,964 $0
Investment Income $26,339 $25,729 $37,250 $121,932
Total Revenue $102,189 $363,319 $284,834 $229,889
Expenses
Consultants $4,726 $7,453 $6,760 $7,200
Other Expenses $11,867 $3,368 $8,441 $9,572
Total Expenses $16,593 $10,821 $15,201 $16,772
Net Profit $85,596 $352,498 $269,633 $213,117

Balance Sheet

Balance Sheet
2014 2015 2016 2017
Assets
Cash at bank & term deposits $745,938 $1,052,295 $670,781 $300,860
Investments $0 $0 $619,389 $1,144,743
Other assets $21,429 $6,333 $3,181 $10,284
Total assets $767,367 $1,058,628 $1,293,351 $1,455,887
Liabilities $31,815 $0 $7,435 $8,291
Net Assets $735,552 $1,058,628 $1,285,916 $1,447,596
Growth in net assets $323,076 $227,288 $161,680
43.9% 21.5% 12.6%

Purpose and Governance

Purpose

The TSO Foundation Ltd is the trustee of the TSO Foundation Trust. The TSO Foundation Trust is a capital endowment fund, established by deed dated 6 June 2008 as a vehicle for major gifts and bequests, with all Fund earnings to support the financial future of the TSO.

The long term aim an endowment Fund of $20,000,000 in the TSO Foundation Trust. For taxation purposes, the TSO Foundation Trust is exempt from taxation as a Public Ancillary Fund and is a registered Deductible Gift Recipient.

Governance

Currently, the TSO Foundation constitution provides for a maximum of 12 directors:

  • 3 to 5 directors are elected by the members. None of the elected directors can be a director of TSO Holdings Pty Ltd
  • TSO Holdings Pty Ltd can appoint 2 to 4 directors, provided the number of those so appointed is at least one less than the number appointed by the members
  • The Board can appoint up to a further 3 directors to achieve a balance in skills, experience and expertise

Currently, there are 8 directors on the Board and one Board advisory committee, covering audit and risk. On 28 September 2015, directors approved a Board charter, which provides for an annual review process.

Summary of Strategic Plan 2016 to 2018

For the 3 years to December 2018, the key goals are:

  • Achieve an annual income stream sufficient to make a difference to the operations of the TSO

Directors aim to achieve a capital fund of $2M and an income of $100K by 2018.

  • Achieve a critical mass of notified bequests sufficient to establish a stable income stream.

Directors aim to grow the number of notified bequests to 40 by 2018.

  • Nurture the TSO family through conductor’s circle events.

Directors aim to grow the number of participants in TSO and Foundation by events 10% each year to 2018.

The Strategies to achieve the above goals are:

  • Continue to identify potential major donors and people making bequests
  • Develop and deliver annual fundraising plan integrated with TSO annual operations and projects
  • Develop innovative investment strategy
  • Strengthen engagement with pledged and potential donors and people making bequests
  • Develop and implement an annual communications plan, working closely with the TSO