Financial Review 2019


2019 saw significant change within the delivery of support to the beneficiaries of The Royal Navy and Royal Marines Charity. A change in strategy in grant making towards partnerships and commissioning meant significant committed awards held on the balance sheet as part of Year 1 of a new 3-year strategic partnership with beneficiary-facing charities. These partnerships are reviewed annually to make sure they are delivering the expected support.

The RNRMC Group closed the year with total funds valued at £98.3m, an increase of £5.76m in 2019 mainly due to the significant rise in Investment Markets in December as a result of the UK General Election. The value of Investments rose by £7.3m and with the transfer in of £2.3m of Royal Marines Association assets as they merged with The Royal Marines Charity, these increases offset the planned commitment to grow our Charitable Activity spend for beneficiaries within the Group. Direct grant awards rose above £11m for the first time and were nearly 40% higher than 2018.


The total income of the Group reached £16.3m, an increase of £2.9m (+21%) from 2018. The increase in income mainly related to two areas:

1. One off transfer in of Assets from the Royal Marines Association of £2.6m which relates to Investment assets and a fixed asset building held in Deal, Kent.

2. Other Income decreased by £0.6m due to a one-off campaign in the prior year (2018) to raise funds for the Drumfork Project.

3. The Inclusion of RM Shop for the first time meant an increase in Income and an increase in costs presented in the statements.

4. Other income streams continued to grow at a level consistent with Industry standards.

Donations & Legacies

• Payroll Giving - Through generous donations from serving Naval
Personnel, the Navy’s Payroll Giving scheme grew by another 5% to £1.1m. Although the overall number of donors had decreased there was a real increase in the average donation per donor.

• Legacies –Income from legacies increased again in 2019 from £711k to £811k, with the RNRMC benefiting from an annual legacies received total exceeding £250k for the first time, a real signal of the growth in understanding of the Charity among
its community

Demand again surpassed income and we will continue to develop our income streams such as legacies, individual giving and corporates whilst utilising our reserves brought forward to meet this unmet need.


Total expenditure increased significantly in 2019 to £17.9m (2018 £13.2m). The main reasons for this were:

1. Commitment of significant Commissioning Programmes, year 1 of 3 in partnership with Charities both inside and outside of the military sector.

2. Increased activity after merger of The Royal Marines Charity with Royal Marines Association and its RM Shop subsidiary

Grant Making

The RNRMC remains committed to supporting its beneficiaries with £10.6m distributed through grant making (compared to £8.01m in 2018).

A recalibration of the relationships with many of our charities has moved much of the spend from the “Through Life Pathway” into Commissioning programmes. The residual grant awards continue to increase in this area and 15 new organisations were funded for the first time.

Raising Funds

Fundraising costs - whilst we recognise the need to invest in raising
our funds and developing our marketing and communications we control this variable cost tightly. In 2019, the Group’s costs increased to £3.7m (£2.5m in 2018), due to investment in new events which brought additional income and engagement of donors who we believe will support us financially in future years. The consolidation of the Royal Marines Shop into the Group also contributed to this rise.

Investment Fees - The requirement for transparency in investment fee reporting through MiFiD2 has caused a change in the accounting of investment fees in 2018 whereby fees had previously been incorporated into funds pricing and netted off against income they are now shown as their total cost. This has continued to have an effect in 2019 with additional fees shown. The overall level of fees charged has remained the same it is the presentation of them in the Statement of Financial Activity that is different.

How we raised funds in 2019

How we distributed funds in 2019

This is a summary of information extracted from the full audited and unqualified annual accounts of the Royal Navy and Royal Marines Charity for the year ending 31st December. This summary may not contain sufficient information for a full understanding of the financial affairs of the charity. The RNRMC Group Annual Report and Accounts have been audited by Kingston Smith LLP. Copies of the full audited accounts and financial statement can be requested by emailing
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