EXCLUSIVE: NPOs merge following ACE talks

Two poetry charities have joined forces following discussions with Arts Council England (ACE) in what is the first merger of two members of the current National Portfolio.

Poet in the City, which entered the National Portfolio in 2011, has closed as a separate charity, with its activity continuing as a dedicated programme strand within Apples & Snakes, which is based at The Albany in Deptford, London.

The organisations cited the “tough” environment for arts organisations as a factor behind the move.

Lennie Goodings, chair of Poet in the City said that even though the charity was supported with core ACE funding – of £68,313 a year – it had been facing challenges recently.

As part of the merger, Goodings and three Poet in the City trustees – Charlotte Cole, Lucy Dundas and Shahrukh Bhatty – will become part of an expanded Apples & Snakes board.

“This is an ideal time for us to join forces with the very impressive Apples & Snakes,” Goodings said.

“It’s a good home for us and, we believe, for our poets, volunteers, audiences, former funders and partners. We know that our important mission will be cherished and strengthened through this partnership.”

Unsuccessful funding bids

Poet in the City’s most recent accounts, for the year ending March 2023, show that the charity’s income dropped from £475,438 in 2021/22 to £233,705 in 2022/23. Expenditure of £351,954 in 2022/23 left it with a deficit of £118,249 for the year.

Its annual report states that it was unsuccessful in bids to trusts and foundations and notes that a number of long term staff departures – including the CEO and artistic leads – followed by significant recruitment and induction periods had an impact on the charity’s ability to focus on fundraising.

ACE has endorsed the move and Poet in the City’s annual funding will now go to Apple & Snakes, which itself receives £463,372 a year from the public funder.

An ACE spokesperson said: “We are very pleased that Poet in the City’s work in nurturing young producers for spoken word and celebrating poetry through community-centred events will continue by joining forces with Apples & Snakes, with whom they have a strong shared vision. The prospect of a new public archive for spoken word is a very welcome development.”

Lisa Mead, CEO and artistic director of Apples & Snakes said: “As a long time admirer of Poet in the City’s work, we are excited to develop and deliver a new strand of work rooted in Poet in the City’s ethos.

“It’s really tough in the arts sector at the moment with many vital organisations having to rethink their business models. This joining of forces feels both mutually beneficial and forward thinking.

“We hope it will enable us to have an even greater impact on artists, audiences and the wider sector.”

Five departures from National Portfolio

The closure of Poet in the City as a separate charity brings the total number of departures from the 2023-26 National Portfolio to five.

The Great Literary Agency announced last month that it will close at the end of March, and Derby-based dance company Déda went into liquidation in August 2024.

ACE has also confirmed that Studio 3 Arts which ran community arts activities, and Beacon Collaborative, which focuses on growing philanthropic giving in the UK, have also left the portfolio.

Studio 3 Arts, which was based on Barking, went into liquidation in December 2023, just nine months into the 2023-26 National Portfolio period and despite getting a 37% increase in annual funding from ACE.

Beacon Collaborative said that it completed its five-year work plan last year and has reduced its external activity “in order to take stock”.

A total of 990 organisations were originally announced as members of the 2023-26 National Portfolio, but six that were offered funding were unable to reach an agreement on conditions with ACE and dropped out, while one that was initially not offered funding was included.

The five departures since the funding period began means the number of organisations in the portfolio has now dropped from 985 to 980.

An investigation conducted last year by Arts Professional and MyCake, a financial benchmarking company that provides insights and advice to third sector organisations, found arts organisations making up the 2023-26 National Portfolio were collectively in the red by £63.1m in 2023.

While some of the organisations broke even or made a profit in 2023, the number that did shrunk at an alarming rate. Nearly one in five NPOs (18%) had expenditure levels 20% or more above their income.