The Livery Newsletter and Gazette Issue 32 Spring 2020 | Page 11

Benevolent Fund - Uncertain Times Ahead
April heralds a new financial year for the Benevolent
Fund. At our February meeting, the Trustees agreed
the budget for the next financial year and we start
the year knowing which charities we shall support,
how much that support will cost and the size of the
smallish reserve we have to support causes on an
ad hoc basis. Similarly, the Welfare Fund submits
its budget based on predictable factors such as
donations and investment income. However, grants
and support to claimants are less predictable but we
know, in times of rising unemployment and pressure
on state support, more claimants will need help.
Between signing off the budgets and the start of
our new financial year, a rampant bull market was
stopped in its tracks and, one by one, governments
around the world put their economies into a state of
suspended animation and imposed unprecedented
peacetime restrictions on their citizens. What
had been seen as a regional outbreak of a novel
coronavirus affecting China, Hong Kong, and
South Korea soon became a global pandemic. The
suspended animation of economies would lead
to atrophy and news flow would be dominated by
the virus, stock market turmoil and public health
initiatives. News reports deal with new coronavirus
cases and deaths on a country by country basis
but it is all too easy to forget that there are real
people having to cope with the consequences of
the pandemic through the loss of health, loved
ones, employment and financial security. The
virus is indiscriminate but the weakest (physically,
financially and emotionally) are at greatest risk.
Usually, charities would step into support those at
risk but social distancing prevents charity workers
getting out to help those in need. Major fundraising
events from the London Marathon to the Lord
Mayor’s Big Curry Lunch have been cancelled.
Even the biggest charities are facing falls in income
of between 35% to 50% in 2020. Many charities
now have an uncertain future. Chairman of the
Benevolent Fund Trustees, Nigel Rich, suggested
I should email each of the charities we support
with reassurance that we have the cash available to
meet our commitments in the new financial year.
A decision by the Trustees several years ago to
maintain a cash buffer of approximately one year’s
charitable expenditure would ensure that we are not
forced to sell assets at the wrong time to meet our
obligations. My emails were gratefully received.
Although we have the cash reserves to meet our
obligations this year, the Benevolent Fund is not
immune from the volatility and uncertainty in
the stock markets. Our investment portfolios are
managed by Quilter Cheviot and are diversified
geographically and by asset class. Between 31st
January and 31st March 2020, the value of the
investments fell by 16.5% and we anticipate
investment income will fall short of the budget for
the current year. Experience has taught us to sit
tight even though the ride may be uncomfortable
and history has taught us that markets will recover
although uphill ride takes longer than the slide.
Looking back at the financial year just ended, it is
too early to give financial highlights. However, I
can disclose that the General Fund and Freeman
Fund made grants of almost £140,000. This sum
was lower than the prior year, which had additional
funds available for distribution carried over
2018. Donations from members of the Company
were higher due to new members, some members
renewing their commitments, donations from the
400th Anniversary Celebrations and the proceeds
of the sale of some of the Company’s valuables. The
Trustees are grateful to all who have generously
supported the Benevolent Fund.
Following are two reports from excellent causes
we support. The Children’s Magical Taxi Tour is
a perfect example of the charitable work of Livery
Movement. Organised by the Worshipful Company
of Hackney Carriage Drivers, this annual event
brings so much precious joy to families with sick and
terminally ill children. The Benevolent Fund has
supported Barrow Farm Riding for the Disabled for
many years, enabling people with special needs and
disabilities to develop their abilities and enrich their
lives through riding.
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