Tasmanian Symphony Orchestra Foundation Ltd

TSO Foundation Trust

I have pleasure in presenting the Foundation’s Annual Report for 2018.

The Trust was established in 2008 to build and manage an endowment fund to support the long term financial security of the Tasmanian Symphony Orchestra (TSO). Funds earned by the Trust are distributed annually to the TSO. In 2018 the Trust distributed $57,904 which the TSO applied to help fund music education, visiting artists and conductors and appreciation of orchestral music.

The Foundation helps meet the major financial challenge of ensuring the TSO continues as a successful orchestra. Our initial objective is to establish an endowment fund of $20 million, with income supporting the TSO. With continuing support from committed and farsighted donors and a focus on the future, we are confident we will achieve this objective. An attractive option for orchestral enthusiasts, once family and other needs are provided for, is to make a gift in your will to assist the TSO.

The Trust is managed by a corporate trustee, the TSO Foundation Ltd, which looks after Trust funds. The Trust is managed by an independent board of honorary directors, supported by a Board audit and risk committee.

The Trust and the Foundation are independently audited on an honorary basis by Deloitte. Independent investment and portfolio advice is provided by Unica Wealth.

The Trust’s financial position improved during 2018 with net assets increasing by $129,829 to $1,577,425 at year end, of which $1,462,891 is held as investments.

The Trust earned income of $210,255 during the year, including $199,350 from donations and $35,000 from bequests. It was a difficult and volatile year for investments, with income of $71,400 offset by an unrealized capital loss of $99,774. The unrealized capital loss was recouped during January 2019 as the investment market improved, but the Trust’s investment advisers expect volatile market conditions to continue in 2019. The Trust earned a net profit of $187,733 for the year, $25,384 (-12%) below 2017.

Thanks to all directors for their contributions during the year. At 31 December 2018 directors are Peter Stanton (Deputy Chair), Joe Giedl, Janice Foster, Tim Bugg and Pat Leary, a great team. Thanks to Nicholas Heyward, who retired as TSO Managing Director in December 2018 and welcome to Caroline Sharpen as the TSO’s new CEO. Thanks to TSO management and staff for their strong support to the Foundation. Special thanks to Sam Cairnduff.

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 Friday 6 April 2018, 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 2018, the Foundation gratefully acknowledges 16 notified bequests.

Dick Shoobridge

Chair

15 April 2019

Financial Summary

Financial Summary
Revenue 2014 2015 2016 2017 2018
Donations $75,850 $37,590 $219,620 $107,957 $199,350
Bequests $0 $300,000 $27,964 $0 $35,000
Investment Income $26,339 $25,729 $37,250 $119,485 -$29,724
Other income $2,447 $5,629
Total Revenue $102,189 $363,319 $284,834 $229,889 $210,255
Expenses
Consultants $4,726 $7,453 $6,760 $7,200 $8,000
Other Expenses $11,867 $3,368 $8,441 $9,572 $14,522
Total Expenses $16,593 $10,821 $15,201 $16,772 $22,522
Net Profit $85,596 $352,498 $269,633 $213,117 $187,733
Balance Sheet 2014 2015 2016 2017 2018
Assets
Cash at bank & term deposits $745,938 $1,052,295 $670,781 $300,860 $74,004
Property Plant & Equipment $0 $0 $0 $0 $35,000
Investments $0 $0 $619,389 $1,144,743 $1,462,891
Other assets $21,429 $6,333 $3,181 $10,284 $11,019
Total assets $767,367 $1,058,628 $1,293,351 $1,455,887 $1,582,914
Liabilities $31,815 $0 $7,435 $8,291 $5,489
           
Net Assets $735,552 $1,058,628 $1,285,916 $1,447,596 $1,577,425
Growth in net assets $323,076 $227,288 $161,680 $129,829
43.9% 21.5% 12.6% 9.0%

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 2019 to 2021

For the 3 years to December 2021, 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 $2.5M and an income of $100K by 2021.

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

Directors aim to grow the number of notified bequests to 45 by 2019 .

The Strategies to achieve the above goals are:

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