(July 2010)
You can also view the colour PDF version of the Royal Opera House, Covent Garden Limited assessment report.
The Charity Commission is the independent regulator of charities in England and Wales. In November 2009 we started a public benefit assessment in relation to the Royal Opera House, Covent Garden Limited. This is a report of our findings.
This report sets out the Charity Commission's findings from its public benefit assessment for the Royal Opera House, Covent Garden Limited ('the charity'), registered charity number 211775. You can find further information about what public benefit assessments are, how we carry them out, a glossary of terms used and other details on the public benefit pages of our website.
Charity registration details
The Royal Opera House has been in existence since the eighteenth century, originally as a playhouse and later as an opera house and ballet theatre.
The Royal Opera House, Covent Garden Limited was incorporated as a company in 1950 and registered as a charity in 1962, shortly after the introduction of the registration requirement in the Charities Act 1960. Its objects are:
'To promote and assist in the advancement of education so far as promotion and assistance shall be of a charitable nature and in particular, so far as of a charitable nature, to raise the artistic taste of the country, and to procure and increase the appreciation and understanding of the musical art in all its forms.'
Location and operation
The charity owns and operates the Royal Opera House in Covent Garden, from which the Royal Opera Company and the Royal Ballet operate as internal divisions of the charity. The charity stages its major performances at the Royal Opera House, and also tours smaller scale works to venues in England. The Royal Ballet and the Royal Opera tour internationally. As well as live performances, the charity offers screenings of performances in major cities throughout the country, and its performance work is broadcast by the BBC and through its own website.
Through a range of initiatives, the charity maintains and preserves collections of existing works and commissions new work. It offers a number of artistic development programmes for artists and small scale companies, to develop individual talent and to encourage the development of new work.
The charity has an established education and outreach programme which is directed towards the general public. Activities within this programme are extensive and include access to a multi-media website with downloadable material, local and national music and dance projects for all ages and abilities, community productions and Insight events on works in the charity's repertoire.
The charity is also involved in a joint venture to create the Royal Opera House Production Park in Purfleet, Thurrock, where set and scenery construction workshops for Royal Opera House productions will be housed. The park will be the home of the National Skills Academy for Creative and Cultural Skills, offering training opportunities for 16-19 year olds and professionals seeking a recognised qualification in offstage and backstage technical skills. Work on the Park began in 2009 and it is due to open this year.
The charity's income is derived from a combination of external and self-generated funding. Around 45% of the charity's income for 2009 came from operating the Royal Opera House, including box office returns. The charity received 28% of its income from a revenue grant from Arts Council England.
Opportunities to benefit for those unable to afford the fees
Subsidised and free access to performances (more details are in Annex A, section 2)
Financial summary: year ending 30 August 2009
Related Parties
This financial summary is based on the consolidated accounts of the charity and its subsidiaries for year ended 30 August 2009. The charity owns 100 per cent of a number of subsidiaries (its own trading company, Royal Opera House Covent Garden Trading Limited, ROH Holdings, and Opus Arte UK Ltd).
Royal Opera House Foundation, a membership and fundraising organisation, is treated as a subsidiary on the basis of common control. The Royal Opera House Endowment Fund 2000 is a separately registered charity, and is consolidated into the group accounts of Royal Opera House, Covent Garden Limited due to the benefits it receives from grants and the consideration and review of grants undertaken by the trustees of the Royal Opera House, Covent Garden Limited.
In this section, we report on the charity's aim and whether it falls within the list of descriptions of purposes within section 2 (2) of the Charities Act 2006 that are capable of being charitable purposes.
The charity's objects* are as follows:
The charity is well known for the presentation of opera and ballet of the highest quality at the Royal Opera House and elsewhere. The charity also seeks to advance its aims by:
The evidence submitted by the charity demonstrates that it not only advances education in opera and ballet but, more widely, maintains and promotes high standards of performance now and in the future, encouraging the creation of further works for the benefit of all and developing and improving artist performance and production skills.
The charity's objects read as expressing an aim for the advancement of education. Since these objects were adopted, the promotion of the arts has been recognised in its own right as an aim which is capable of being charitable1. Using the information about the charity's activities, we considered that the charity's objects, as properly understood in a modern context, express an aim for the promotion of the arts and that it pursues this aim by a number of means, including the presentation of public performances and through other significant programmes involving the development of, and education in, the arts. Our assessment found that the charity's operation was fully within this aim.
We concluded that the charity's aim falls within s2(2)(f) of the descriptions of purposes in the Charities Act 2006 - the advancement of the arts, culture, heritage or science - and is capable of being charitable.
* set out in its articles of association, incorporated on 1st April 1950
Having established in section C that the aim falls within the descriptions of purposes at s2(2) of the Charities Act 2006, we consider here whether that aim is for the public benefit and, consequently, whether the Royal Opera House, Covent Garden Limited is a charity. We also consider whether the trustees are complying with their duty to administer the Royal Opera House, Covent Garden Limited for the public benefit.
We considered these issues against the two public benefit principles. These are:
Principle 1: There must be an identifiable benefit or benefits Principle 2: Benefit must be to the public, or section of the public
We looked at the sub-principles within each of these.
We set out at Section D7 our conclusions on whether the aim of the Royal Opera House, Covent Garden Limited is for the public benefit and whether the trustees are administering it for the public benefit.
We looked at the first two sub-principles together:
Relevant benefits
The charity's identifiable benefits can be characterised in the following categories:
The staging of public performances of art, such as opera and ballet, is a recognised means of advancing the arts. The charity's established reputation amongst the public, funders and commentators as a leading presenter of these art forms, together with many awards at national and international level, are all positive indicators of artistic quality.
These are all activities which develop and contribute to the pool of talented artists, musical works and backstage staff, which benefit and enrich the cultural life of the country and, in so doing, help to raise artistic taste. Our assessment found that the benefits are clear, identifiable and related to the charity's aim.
These are all ways of advancing the arts through public education and our assessment found clear, identifiable benefits which were related to the charity's aim.
The benefits identified in these three categories all relate to the charity's aim and are relevant to these sub-principles.
We concluded that there are clear, identifiable benefits that are related to the charity's aim. The benefits are sufficient to enable us to conclude that the charity does meet sub-principles 1a and 1b.
Sub-principle 1c: Benefits must be balanced against any detriment or harm
We explain in Charities and Public Benefit our approach to assessing this sub-principle.
Based on this, we found no evidence or indication of detriment or harm in relation to this charity.
We concluded that there was nothing under sub-principle 1c that would affect the assessment of public benefit in this case.
Sub-principle 2a: The beneficiaries must be appropriate to the aims
The charity's aims are directed towards the general public. The charity seeks to reach as wide an audience as possible. The charity categorises its beneficiaries as:
The charity's activities are wide-ranging and tailored towards the needs of different elements of the community.
We concluded that the beneficiaries are appropriate to the aim and that this sub-principle is met.
Sub-principle 2b: Where benefit is to a section of the public, the opportunity to benefit must not be unreasonably restricted
In this section we consider geographical and other restrictions. In section D5 we consider restrictions arising as a result of the fees charged.
Geographical restrictions
There is no geographical restriction applied to the opportunity to benefit. The benefits are available to everyone.
Restrictions on access to facilities and services
There are some benefits which are directed towards individuals with specific skills and talents such as Dancelines, a choreographers' development course. Access to such benefits is subject to individuals demonstrating the talent and skill required to take up the opportunity. Given the demands of such courses, the restrictions in relation to aptitude are reasonable for the charity to apply.
Other restrictions
There are no other restrictions applied to the opportunity to benefit.
We concluded that the opportunity to benefit is not unreasonably restricted by geographical or other factors outlined above and that the charity does meet sub-principle 2b in relation to restrictions other than fees.
We considered the remaining element of sub-principle 2b together with sub-principle 2c:
Taken together, these sub-principles mean that the charity must be able to show that there is sufficient opportunity to benefit in a material way that is related to the charity's aim for those who cannot afford the fees, including those in poverty.
We describe in section C of Public Benefit and Fee-charging the principal factors derived from case law which we use to assess this.
We set out below how these factors apply to the circumstances of the charity.
D5(i) Does the level at which fees are set have the effect of preventing people who are unable to pay the fees from benefiting from the services or facilities?
Performances in the main auditorium at the Royal Opera House in Covent Garden are a fundamental and historic part of the charity's operation. Benefit derived from attending performances requires a one-off payment for each performance. In the current season the most expensive ticket costs in the region of £210 for some performances; for other performances the highest prices are lower than this, with examples ranging from £37.50 to £195. Around 40% of tickets to a recent performance of an opera were priced at £150 and over. The equivalent tickets for a ballet cost £75 or more.
The cost of the higher priced tickets to these performances would exclude a large number of people from accessing the benefits provided by the charity. The charity does, therefore, charge some high fees to one of its fundamental operations.
D5(ii) In relation to those who cannot afford to access the services because of the charges made, to what extent are those charges moderated (in whole or in part) in order to:
The charity provides a mix of opportunities in relation to this factor and we looked at the totality of benefits provided by these opportunities, which include:
The charity provided details of opportunities which fall within each of these categories and we have set these out in Annex A. In the following paragraphs we explain how we looked at these categories.
Sub-principles 2b and 2c - conclusion
Taken together, the totality of benefits indicates access is only limited by high fees to a small proportion of the charity's overall range of benefits. Many of its services are provided through free activities, and others for prices which are affordable to most people. The opportunity to benefit is not unreasonably restricted by ability to pay the fees charged, and people in poverty are not excluded from the opportunity to benefit.
We concluded that, taking into account what is reasonable and appropriate in the circumstances of this charity, it does provide sufficient opportunity to benefit in a material way for those who cannot afford the fees, including people in poverty, and that the charity meets sub-principles 2b (in relation to fees) and 2c.
Principle 2d: Any private benefits must be incidental
The charity operates some membership schemes for the purpose of raising funds to contribute to the running of the charity and subsidise tickets for the general public. The benefits arising to members of these schemes, which are mainly the opportunity to book early or to secure preferred seats, are incidental to the charity carrying out its aims.
We considered under this principle the private benefit arising from the charity's remuneration of its senior employees and artists. Our assessment found that these payments, and the means by which the charity determines them, were fully consistent with, and incidental to the charity carrying out its aim.
We concluded that private benefits are incidental and that this sub-principle is met.
Conclusion: Is the charity's aim for the public benefit?
We concluded that all of the sub-principles are fulfilled, that the aim of the Royal Opera House, Covent Garden Limited is for the public benefit and that the trustees are administering it for the public benefit.
We concluded that Royal Opera House, Covent Garden Ltd is a charity and that the trustees are administering it for the public benefit.
We have not identified any additional required actions.
This annex uses information provided by the charity to show which activities we assessed in relation to the element of sub-principle 2b relating to fee-charging and sub-principle 2c.
We have categorised the information as follows:
The main body of the public benefit assessment report sets out our analysis of how these opportunities relate to the public benefit requirement.
Staging ballet and opera performances
Example ticket prices for performances in the autumn booking period of the 2009/10 season
Analysis of price bands
Don Carlo (The Nutcracker)
979 tickets priced £150(£75) and over - 43.4% 841 tickets priced £30 - £80(£22 - £60) - 37.3% 437 tickets priced £30(£20) and under - 19.3% of which 324 tickets priced £15(£10) and under - 14.4%
Main auditorium
Across all performances: 13% of all mainstage tickets for both opera and ballet this season cost £10 or less; 15% of all mainstage tickets for both opera and ballet this season cost £11 or less; 20% of all mainstage tickets for both opera and ballet this season cost £14 or less.
Across all performances:
There is a wide range of ticket prices which will be affordable to those who cannot afford the most expensive tickets.
Clore Studio Upstairs - this venue, located within the charity's premises at Covent Garden, provides a performance space for Insight events, masterclasses and pre-performance talks, education and family events and some experimental works.
Ticket prices range from £3 to £22 in the current season. 26% of events in the Clore Studio Upstairs are free. For events for which admission is charged, 50% of tickets are priced at under £15 and 14% are free.
Linbury Studio Theatre - this venue, also located at Covent Garden, accommodates up to 394 people seated in theatre style. It provides a performance space for a wide range of artists and artistic companies independent of ROH and for more experimental and intimate work by the Royal Ballet and Royal Opera together with educational and community events, and free recitals.
Ticket prices range from £3 to £35 in the current season.
In the 2009/2010 season, 50% of tickets in the Linbury are priced at under £15, with 14% being free.
The Crush Room - this space accommodates 160 people seated. Free lunchtime recitals are offered every Monday, tickets can be reserved online.
Performance Activities
Development of the arts and artists
The charity runs a number of programmes and initiatives which deliver these benefits:
Public education
Footnote
1. Report of the Charity Commissioners for England and Wales, 1991; s.2(2)(f), Charities Act 2006
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