Finances and Business Practice FAQs
Finances
How is Tate funded?
Tate is funded by grant-in-aid from Parliament, provided through the Department
for Culture, Media and Sport. Tate supplements this grant through other sources, including trading, admissions to temporary exhibitions and to Tate St Ives, and sponsorship. We now generate over 50% of our income from non-government sources.
See further information on the most recent Financial Statements
The Financial Statements are presented in line with Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005) issued by the Charity Commission. See further details of the SORP [PDF]
Why is the statement of financial activities analysed between Income and Expenditure Capital and Collections?
This analysis sets out how income received is deployed. It is useful for the user of the accounts to see where income is received an utilised for capital expenditure on buildings and works of art.
Why do you split expenditure into Capital and Operating?
Capital Expenditure shows where money has been invested in Tate's assets and comprises money spent on works of art and on the buildings.
Operating expenditure is the money spent on the day-to-day running of Tate.
If the purchase of works of art is treated as capital expenditure why is the asset amount not larger since the Tate Collection is so large?
The assets amount does not include the whole Tate Collection as the policy of including works of art as assets only came into practice in April 2001 and doesn't therefore include works of art acquired prior to this date.
Should Tate not go back and value the whole of the Collection?
It would be incredibly difficult and cost-intensive to put a value on the whole of the Collection. It is also a point of debate, whether the Collection should be valued as an asset in the same way a commercial company would value assets since Tate is restricted in its ability to de-accession works of art under the terms of the Museums and Galleries Act 1992.
How are salaries and terms of employment set at Tate, particularly at Director level?
Tate has a remuneration committee which meets annually to review performance against agreed objectives and agree salary increases for all Directors.
How much does Tate get from the Department of Culture Media and Sport?
Tate received £31,799,000 in grant-in aid for 2005/6.
Must Tate achieve certain criteria or have other obligations in relation to receiving grant-in-aid?
Yes. Tate has an agreement with DCMS (as do other Non-Departmental Public Bodies). This is called the Funding Agreement which outlines certain criteria and ambitions that Tate is working to.
Here is the full Funding Agreement.
How much does the Director get paid?
The Director is currently paid £148,883 per annum (2006–7).
Are Tate staff allowed to be rewarded for work they do for other organisations or companies?
Where private or advisory work is undertaken as a direct consequence of an employee's role within Tate, any fee receivable should be paid to Tate. In any other circumstance the receipt of fees should be discussed and agreed with line managers. Permission must be given by line managers if an employee wishes to lecture, broadcast, examine or submit articles on subjects which come within the ambit of Tate. Any request for permission to undertake private or advisory work should be made using the standard form available to staff. Full guidelines on undertaking private or advisory work exist for staff.
Business Practice
How are services from third party suppliers secured?
There are three main ways in which Tate delivers best value in its purchasing
decisions. As a general rule, for contracts over £5,000, a competitive tendering
process is conducted. For more significant contracts of values over £93,000
Tate either employs companies via the OGC Frameworks programme or tenders for
services under the Public Contracts Regulations 2006. The former is a scheme
operated by the Office for Government Commerce and allows all government departments
and NDPBs to benefit from beneficial rates. The latter requires Tate, in common
with most other public bodies in the EU, to advertise the need for goods and
services via a notice in the Official Journal of the European Union (OJEU).
How are sponsorship decisions taken?
The Development department is responsible for raising sponsorship donations to
supplement Tate's grant in aid from Government in support of Tate's public
programme. During each year's planning and budgeting round an assessment is
made of the sponsorship value of projects within the public programme, potential
targets for securing support and the likelihood of success. Targets are set
by reference to market conditions and in tune with the wider sponsorship sector,
and take account of the cost of programmes to Tate and the impact of each programme
in terms of public benefit.
The development department is responsible for taking sponsorship decisions
within the framework of the agreed budget and business plan, consulting with
relevant programme staff and Directors. The department operates within the
terms of the ethical fundraising policy set by the Board of Trustees. Novel
and contentious sponsorships are referred to the Board for approval, having
sought the advice of the Ethics Committee where appropriate. All sponsorships
are reported to the Board for information within the Director's report.
How do you price sponsorship?
Tate prices its sponsorships based on the marketability of the particular project to be sponsored, prevailing market conditions and the potential impact of each programme in terms of public benefit. The cost of the programme to Tate is also taken into account.
How do you decide whether to accept sponsorships?
Potential sponsorship proposals are discussed with the Director of the gallery before the organisation proceeds with negotiations.
What is your policy on Ethical Fundraising?
Since June 2007, Tate has had the following Ethical Fundraising Policy:
Tate will not accept donations made anonymously, nor when the donor has acted
illegally in the acquisition of funds. More generally, Tate will not accept
donations or sponsorship where accepting these funds would damage the effective
operation of Tate, where our principal aim (and statutory purpose) is to care
for, preserve and add to the works of art we display, for the benefit of the
public. This may be because it harms relationships with other benefactors,
partners, visitors or stakeholders, because it would create an unacceptable
conflict of interest, or because it would damage Tate's reputation.
Decisions on whether to accept donations or sponsorship, when novel or contentious,
are referred to the Board of Trustees for approval, and the Ethics Committee
is able to offer advice when considered necessary.
Have you ever declined a sponsor?
Yes
How much does title sponsorship cost?
Sponsorship sums are confidential.
What is the largest single donation Tate has received?
The Duffield Foundation gave us £6 million in 1987 to build the Clore Gallery.
Sir Edwin Manton's gift of £7million towards the Gallery's £31 million Centenary
Development is the largest single donation ever made to Tate. The gift was
originally announced in 1992 but the donation remained anonymous at Sir Edwin's
request. In addition he promised the Tate a bequest amounting to a further
£5 million and the gift of a Constable painting, The Glebe Farm.
Tate Enterprises
If you are an exempt charity how are you allowed to trade?
As a charity we are permitted under Charity Law to engage in primary purposes
trading which supports our charitable purposes such as major loan exhibitions
Tate also trades through Tate Enterprises Ltd which is a wholly-owned subsidiary
of the Board of Trustees of the Tate Gallery. All profits from these companies
are returned to Tate annually via gift aid.
What is the role and activities of Tate Enterprises?
Tate Enterprises Ltd's principal activities comprise the management and operation
of a restaurant, café and ancillary services for the benefit of visitors to
Tate's galleries. The company publishes and sells books and other products
and merchandise associated with the Collection and Tate activities.
How is Tate Enterprises governed?
Tate Enterprises Ltd comprises two divisions: Tate Enterprises and Tate Catering.
Each division is run by a Chief Executive who reports to the Board of Directors
of Tate Enterprises. The Board comprises ten people (including two Trustees,
three external advisors, three Directors of Tate and the two CEOs of Tate Enterprises).
The Company is chaired by Helen Alexander. The Board of Trustees
The main business of the Enterprises Board is therefore to set strategy and
monitor performance of trading activities. It does the former through discussion
and review of an annual business plan and position papers through the year
on particular issues. It does the latter through regular reviews of performance
against budget and plan.
