A MERGER BETWEEN THE ACTORS’ CHILDREN’S TRUST (ACT) & THE ROYAL THEATRICAL FUND (RTF)

ACT Merger

MEMBERS APPROVE DECISION TO MERGE

We’re pleased to share that, at an Extraordinary General Meeting (EGM) held on Friday 8 May, members of The Actors’ Children’s Trust formally voted in favour of the proposed merger with The Royal Theatrical Fund.

This is an important milestone and reflects a shared commitment to strengthening our impact, protecting our services, and building a stronger future together.

Over the coming months, we’ll be working through the practical steps needed to bring the two organisations together – including governance, operations, systems, and service integration. Our priority throughout will be maintaining continuity for the people and communities we support.

We’d like to thank our members, staff, volunteers, partners, and supporters for their continued engagement and encouragement during this process. We look forward to sharing further updates as work progresses.

FREQUENTLY ASKED QUESTIONS

The Board of Trustees of The Actors’ Children’s Trust (ACT) has agreed to proceed with the proposed merger, in principle, with The Royal Theatrical Fund (RTF), a registered charity incorporated by Royal Charter. We are now bringing the proposal to our membership for consideration and approval.

Below, we have outlined some of the frequently asked questions we have received from members and supporters. If you have additional questions, please do get in touch and we will respond and share the question on our website to ensure we keep the information up to date, and accessible to everyone

Why is ACT considering a merger with RTF?
While the charity currently holds significant funds in reserve, a substantial portion of annual expenditure is absorbed by administration. The current legislative environment places significant burdens on running charities, such as legal, financial and safeguarding policy and practice. A small charity like ACT will struggle to adhere to the legislative requirements without spending more to ensure we have the range of executive skills and resources to cope with these requirements. Continuing at the current rate of spending would gradually deplete the capital within a maximum of 13 years.

In addition, ACT has long been exploring ways to increase awareness of the support we provide to actors’ children and to actors who are parents. By joining forces with a larger charity, we have the opportunity to broaden our visibility and significantly extend the support available to actor families.

The Board of Trustees has therefore undertaken a review to consider a plan for long-term sustainability and impact. By reducing overheads, we can strengthen financial resilience, increase the funds available for charitable activities, and expand our impact and reach by engaging with more families, investing in initiatives that deliver lasting benefit, and drawing on the advisory expertise of a larger charity.

The RTF has been identified as the most suitable charity to continue ACT’s work and legacy. The charitable objects of ACT and RTF closely align and the trustees of RTF and ACT have developed a close and collaborative relationship.

What are some of the benefits of joining together?

  • Secures the long-term survival of ACT.
  • A merger would increase efficiency by reducing overhead costs, streamlining operations, and removing duplication of work in areas such as legal, finance and safeguarding policy and practice.
  • It would provide families with a ‘one stop shop’, reducing the need for multiple applications etc.
  • It would enable us to reach more children and increase our impact.
  • It would offer the infrastructure of a larger organisation with grant-making, welfare/debt signposting, an established fundraising capability and an accomplished board of industry leaders.
  • Governance would be simplified through a single board, unified reporting, and consolidated regulatory requirements.
  • A collaboration of this type would expand opportunities to engage with a wider network of actor families, partners and stakeholders.A merger would increase

Have the terms of the merger been agreed with The RTF?
Yes, ACT and RTF have signed Heads of Terms outlining the proposed terms and structure of the merger. A summary of the Heads of Terms is attached.

How will you safeguard the ACT funds when transferred?
All of ACT’s assets would transfer to RTF but be maintained as a separate restricted fund. This means:

  • funds will continue to be used specifically for ACT’s charitable purposes;
  • investments and spending relating to ACT will be tracked and reported separately.
  • future donations or legacies intended for ACT will be added to this restricted fund.

What is a ‘restricted fund’?
The definition of a restricted fund in the context of a charity merger refers to assets transferred from one charity to another subject to legally binding conditions that they must be used only for defined purposes reflecting the original charity’s objects or donor intentions.

Following the merger, the receiving charity holds and manages these funds separately from its general assets, with trustees under a continuing duty to apply them solely in accordance with those restrictions, to account for them distinctly, and to respect any specific terms attached to the original donations. While the receiving charity retains overall control and responsibility for administration, it must ensure that the restricted funds are applied, so far as the governing terms require, in a way that preserves the originating charity’s purpose and charitable intent.

Who will safeguard the governance and continuity of ACT joining RTF?
To preserve expertise and continuity three ACT trustees will join the RTF Board;
they will guide the grant-making process to ensure ACT’s historic mission and approach continue.
It is anticipated that RTF will engage one additional staff member whose duties will include the grant making programme of ACT activities.

How are Members being incorporated into the new structure?
ACT members would be invited to become “Friends of RTF incorporating ACT.” This would keep members connected through newsletters, updates on ACT activity within RTF, an annual meeting and invitations to relevant events. ACT members who have existing ACT memberships will not pay any subscription fees to RTF.

What will happen if I have left a gift in my will to ACT?
If you have left a gift in your will to ACT, that legacy will pass to the merged organisation once the merger is complete. Your gift will still be used to support ACT’s charitable purposes, so your original intentions are respected even though the charity’s structure has changed.

Why is it deemed necessary to include the “where possible” caveats in the Heads of Terms?
The phrasing is really there for legal and practical reasons, rather than to signal any intention to move away from the agreed mission. It simply recognises that there may be circumstances where it is not feasible to deliver something exactly as originally envisaged. For example, if a restricted legacy were left for a very specific purpose that could not realistically be implemented, we would need some flexibility in how best to honour that intent. The “where possible” wording is therefore intended to reflect a commitment to do everything reasonably achievable, while acknowledging that not all outcomes can be guaranteed.

This applies equally to the continuation of charitable activities. The intention is not to dilute the principles set out in the Heads of Terms, but to ensure they remain workable and do not inadvertently create obligations that could become impractical or unduly restrictive over time.

Why does it state RFT is likely to recruit an additional staff member to support ACT-related activities?
In terms of staffing, the reference to “one additional staff member” was simply a reflection of timing, as we had not yet finalised how responsibilities would be structured. Our intention is to integrate ACT’s application process into RFT’s wider grant-making programme. RFT’s Welfare Officer already provides valuable support around areas such as debt, health, mental health, and social care, and we see significant benefit in ensuring ACT families can access this expertise. That said, this would require additional administrative capacity, and we also anticipate the need to recruit someone with SEND expertise to support the application process for ACT families.

Will ACT’s identity and history still exist?
Yes, RTF has confirmed its intention to recognise ACT’s heritage publicly, including prominent reference to “RTF incorporating ACT” and maintaining ACT’s website and visibility.

How will you maintain ACT’s rate of grant award when part of RTF?
The three ACT trustees on the RTF board will set financial targets to make and pay awards to ACT families consistent with previous award outcomes.

What are the financial costs and benefits of the merger?
The only external costs are for our lawyers, expected to be no more than £20,000, to ensure that the continuing requirements of ACT are met. We do expect to save £100,000 each year on administration, however, which can be directed to ACT children and parents.

How will ACT’s investments be managed?
RTF has a significant investment portfolio (circa £9m) managed by professional investment managers and overseen by the RTF finance committee, which contains suitably skilled and qualified trustees. The ACT investment portfolio will be managed in the same way. Initially, Sarasin Investment Managers will continue to manage the separate ACT portfolio, although RTF may retender that contract in time.

What will happen to ACT ‘the charity’ after the merger completes?
Following the merger, ACT will be left with no assets or liabilities and will be dissolved. ACT trustees will apply to the Charity Commission to remove ACT from the register of charities. However, ACT’s work, identity and values will continue in its own right under RTF, ensuring its legacy lives on as part of the wider organisation.”

What will happen if the merger does not go ahead?

ACT would revert to operating as a ‘gift-giving’ charity, delivering a purely responsive service that supports individuals already aware of the organisation. There would be no family support services, SEND advice or benefit/debt signposting capability. This model would be low-cost, likely requiring only a single, home-based staff member and minimal resources.

However, while financially efficient and sustainable in the short term, it would also be low-impact. Our reach would not expand, and financial support would be limited to those already within our existing community. There would be no capacity to undertake fundraising activity, meaning the organisation would rely entirely on spending down its existing capital. As a result, this approach would be inherently time-limited, with an estimated lifespan of up to 13 years.

Why is it important to vote?
As members, you carry an important responsibility, not just for the charity as it is today, but for its long-term strength and stability. The decision before you is about more than structure – it is about safeguarding our mission, the children and parents we serve, and the legacy we’ve built together.

Thoughtful consideration of the merger option means weighing up what will best protect our impact, resilience, and capacity to thrive into the future. By making a careful, forward-looking choice, you help ensure the charity remains strong, relevant, and able to continue its vital work for the children of actors and actors with children for years to come.

If you have comments or questions, please just email us at info@actorschildren.org and we will get back to you promptly.

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