Part 2: Creative Folkestone’s charity arm accounts (2019–2024): A Shepway Vox Investigation

Creative Folkestone, the visionary arts charity at the heart of this seaside town’s cultural revival, has ridden a rollercoaster of fortunes over the past five financial years. From the elation of record-breaking festival attendances to the gut-punch of pandemic closures, its story is one of resilience, innovation, and hard financial truths. A review of the charity’s annual reports from 2019–2020 through 2023–2024 reveals a period of transformative highs and lows – the good, the bad, and the undeniably ugly – as Creative Folkestone strove to “make the town a better place to live, work, play, study and visit”.

Financial Performance: Surplus Peaks And Funding Valleys

In financial terms, Creative Folkestone’s ride has been anything but smooth. The charity entered 2019/20 in steady shape, with income of £2.91 million against £2.96 million in spending, essentially breaking even with a modest £51k deficit. But as COVID-19 struck in spring 2020, it upset carefully laid plans and budgets. Rental income fell short when two new Creative Quarter properties were delayed and a key tenant left the Glassworks building. The year ended with reduced revenue and a scramble to cut costs: the charity furloughed staff, trimmed expenses, and leaned on its cash reserves to weather the initial storm.

Ironically, 2020/21 turned into a surprise financial high point. An influx of emergency grants and one-off funds buoyed income to £3.66 million, far outstripping expenditure of £2.27 million. This £1.39 million surplus – the largest of the five-year period – was driven by extraordinary support: a £237,539 Cultural Recovery Fund grant from Arts Council England helped replace lost ticket sales and prep venues for safe reopening, and a major restricted donation (over £1.16 million earmarked for future projects) boosted the books. At the same time, lockdown forced drastic savings. The charity streamlined its workforce, making some roles redundant and placing others on furlough. With theatres dark and festivals postponed, program costs dropped sharply. The result was a rare silver lining: a significant surplus and cash in the bank – albeit funds destined for specific purposes. Much of that windfall was restricted for capital projects, not day-to-day use, and was promptly invested in property and the postponed Folkestone Triennial slated for 2021.

By contrast, 2021/22 saw an explosion of activity – and spending – as the world reopened. Total income shot up to £4.93 million, the highest in the review period, powered by the long-awaited fifth Folkestone Triennial arts festival and continued donor support. The charity’s own programs and services generated more income as venues welcomed back patrons, contributing £3.14 million from “charitable activities” such as ticket sales, art commissions and rentals. On top of that, an even larger restricted grant of £1.71 million (likely from the Roger De Haan Charitable Trust, as explained later) flowed in to fund capital works and special projects. However, expenditure ballooned to £3.91 million as Creative Folkestone delivered an “ambitious and challenging arts and performance programme” to make up for lost time. The blockbuster Triennial, which ran 15 weeks in 2021, was costly – about £2.1 million in total exhibition costs, as the trustees note. Indeed, the unrestricted operational budget actually went into the red by some £380k that year, and it was the earmarked funds that covered festival production expenses which kept the charity’s accounts in the black. The bottom line for 2021–22 was a £1.02 million surplus, but this masked an operating shortfall funded by large one-off donations.

Then came 2022/23, a year of recalibration. With no Triennial and no huge new capital grants, income fell dramatically to £2.79 million – a 43% drop. Absent the prior year’s big influx from donors (donations plunged from £1.72 million to just £40k), the charity relied on its core earnings: venue rentals, ticket sales and smaller grants. Those “charitable activities” revenues actually held up relatively well at £2.63 million – a testament to local support – but overall 2018–19. The Board responded by tightening belts: with the Triennial on hiatus, total spending was slashed by over £1.2 million to £2.71 million. Costs for festivals and events were pared back, and efficiency measures from the pandemic era carried forward. The result was effectively a break-even year. Creative Folkestone eked out a surplus of just £85,973 in 2022–23. After two years of unusual surpluses, this return to a razor-thin margin underscored the ongoing challenge of financial sustainability without extraordinary aid.

Finally, 2023/24 delivered a cautiously optimistic upswing. Income recovered to £3.08 million, thanks in part to a successful reboot of the Folkestone Book Festival and a strategic shift in programming to boost ticket sales. Expenditure was kept in check at £2.66 million – slightly below the previous year – reflecting further cost discipline and the absence of any large one-time event expenditure. The charity posted a healthy £416k surplus. Importantly, this time the gain was more genuinely operational: unrestricted funds (the charity’s free reserves) grew by around £399k. After years of being pumped up by restricted capital grants, the core finances showed improvement, indicating that cost-cutting and income-generation efforts paid off. In the words of the trustees, by year’s end the changes had “generated an increase in audiences of over 80% and a financial improvement of over £100,000 a year” at the Quarterhouse venue. In short, 2023–24 saw Creative Folkestone beginning to stand on its own feet again, albeit still with major support from funders.

Key revenue streams over the five years reveal the charity’s dependency on external support. Donations and grants (from Arts Council England, the local council, national trusts and especially the Roger De Haan Charitable Trust) made up a sizeable portion of income each year – spiking in grant-heavy years like 2020–21 and 2021–22. Meanwhile, earned income from “charitable activities” – which includes property rentals in the Creative Quarter, ticket sales to events, and merchandise – has grown as a share of the total, rising from about £2.3 million in 2018–19 to £2.68 million in 2019–20 and peaking at £3.14 million in 2021–22 during the Triennial. Rental income in particular is a steady underpinning: the charity leases some 90 properties from the De Haan trust at peppercorn rates and sublets them as affordable studios, shops and flats – a model that “provides a rental income… to satisfy its charitable objectives”. However, even this core income is subject to the local economy’s flux. In 2019–20 a couple of renovation delays meant fewer units to let, which “adversely impacted” rentals. By March 2021, occupancy had rebounded to an impressive 93.9% of available units (excluding a new digital hub building), and it stayed “over 90%” through 2022 and 2023 as creative businesses refilled the quarter. High occupancy kept rental revenues stable even when other income streams faltered.

On the expenditure side, the biggest costs have been delivering artistic programmes (festivals, events, commissions) and maintaining the property portfolio. Staff wages are also a significant expense – though the team is small, averaging around 23 employees in 2020. Staff costs hovered around £759k in 2019–20 and likely increased with the addition of a Deputy CEO in late 2019 and other roles, before pandemic layoffs. The charity’s spending on salaries and freelancers naturally dipped in 2020–21 during furloughs, then rose again with the ramp-up of activities in 2021–22. One constant is that many projects are funded by restricted grants – meaning the spending is tied to specific purposes. By March 2024, £19.49 million of Creative Folkestone’s £21.3 million in net assets was restricted, largely representing the value of those donor-funded buildings and designated project funds. The cash free reserves – the true rainy-day fund – stood at about £1.83 million unrestricted. That’s a solid cushion (exceeding the trustees’ £400k minimum target), built up from the recent surpluses, but modest relative to the charity’s scale and exposure.

In sum, the five-year financial trend tells a tale of dramatic swings: from a near-balanced budget pre-pandemic, to a grant-fuelled surplus amid crisis, to an exuberant big-budget festival year, followed by a lean reset and careful recovery. Each peak and valley had its reasons. And behind the numbers lies the story of how Creative Folkestone achieved (or struggled to achieve) its mission in the community during this tumultuous period.

Community Impact: Audiences, Engagement and Events

While the accountants were hard at work, Creative Folkestone’s artistic team was busy engaging the public – when circumstances allowed. The charity’s impact on the community can be measured in audiences attracted, events staged, and people educated or involved. These metrics, too, saw wild variation between 2019 and 2024, reflecting extraordinary external forces and a resilient bounce-back.

In the 2019–20 season (pre-COVID), Creative Folkestone was firing on all cylinders. The Quarterhouse, its 270-seat theatre and cinema, enjoyed “another successful year” with an expanded programme of music, theatre, dance, comedy and film. In total, the performing arts team organised 455 performances and sold 23,413 tickets – a remarkably high level of cultural activity for a town of Folkestone’s size. The annual Folkestone Book Festival in November 2019 was a highlight, refreshed with a “new look” and drawing diverse crowds. Over 1,000 primary school children and 70 secondary students attended free young readers’ events as part of that festival, and in all more than 3,000 people (children, young people and adults) participated in the charity’s Learning and Engagement Programme during 2019/20. These numbers reflect a deeply embedded community presence: school workshops, after-school clubs like the Neon Drama Club (which had 171 children attend over the year), guided art tours, and myriad public events. By early 2020, Creative Folkestone had succeeded in making art and culture a routine part of local life for thousands – “enabling people’s creativity to flourish” as their mission states.

Then came March 2020. The last live event at Quarterhouse took place on 16th March 2020, before the pandemic forced the theatre dark. 2020–21 was the year of no live audiences. The Folkestone Triennial scheduled for 2020 was postponed a full year. The 2020 Book Festival was canceled (a smaller online replacement, “Autumn Reads,” was devised). All regular indoor performances were mothballed. The once buzzing Quarterhouse remained closed to public audiences throughout 2020 and into 2021. In-person creative learning also halted; workshops and clubs either shifted to Zoom or were put on pause.

Yet this bleak scenario had a silver lining: digital innovation and outdoor creativity flourished. The team “worked hard to deliver an online programme” during strict lockdowns. One standout was the Autumn Reads digital literary festival in November 2020, a free four-day online event celebrating the diaries of filmmaker Derek Jarman (whose Dungeness cottage the charity had just helped save). Remarkably, Autumn Reads reached an audience of almost 70,000 people online – an order of magnitude beyond the usual book festival turnout. Virtual talks and newly commissioned short films drew viewers from across the UK and overseas, aided by a surge in social media engagement (the charity’s followers grew 40–50% during lockdown as locals craved digital content).

At the same time, Creative Folkestone tapped into safe, socially-distanced arts in the public realm. It launched “The Plinth” in September 2020 – an imaginative project placing 10 empty plinths around town for residents to display their own lockdown creations. The community responded avidly: by December, an estimated 70,000 people had toured the impromptu outdoor exhibition of local art on The Plinth trail. Pop-up outdoor performances also returned cautiously via the “Performance Plinth” in Payers Park. On World Mental Health Day in October 2020, for example, live music, dance and poetry on the outdoor stage drew over 2,000 attendees (all safely spaced outdoors) – a welcome taste of normalcy. Another inventive lockdown project was Stacy Makishi’s “Church of the Latter Day Sinners,” an interactive art experience by telephone and Zoom that engaged 480 participants from around the world. In short, even though 2020–21 saw essentially zero traditional events or in-person attendance, the charity managed to keep people engaged through creative means. It was, as the Board noted, “an unprecedented and challenging year” – but not a lost one.

With vaccinations and easing restrictions, 2021–22 roared back to life for Creative Folkestone’s programmes – most dramatically with the Folkestone Triennial 2021. Postponed by a year, the fifth edition of this internationally acclaimed public art triennial became the biggest event Folkestone had ever seen. Running from July to November 2021, the Triennial transformed the town with 23 new outdoor artworks by 21 artists (including Turner Prize winners) scattered across Folkestone’s streets, seaside and buildings. The response was enormous: approximately 220,000 visitors enjoyed the exhibition (45% of them first-time visitors to Folkestone) – far exceeding prior Triennials and doubling the proportion of new audiences. This massive influx provided “a much needed reboot” to the local economy, generating an estimated £11 million in economic activity for shops, restaurants and hotels. It’s no wonder that 2021–22’s audience bar towers over other years. The Triennial’s success was undoubtedly “the Good” at its best (more on that later).

Beyond the headline numbers, the Triennial also catalyzed deeper engagement. A comprehensive public programme of 245 Triennial-related events and activities – from artist talks and guided walks to hands-on workshops – was rolled out alongside the exhibition. The Learning Programme delivered 43 workshops and tours for schools and community groups, attended by 1,067 people of all ages. Thanks to projects like these, Creative Folkestone’s overall learning and participation figures in 2021–22 surged. The charity reports “a diverse and inclusive programme” of in-person engagement returning, offering more than 136 activities with approximately 7,600 participants throughout the year – easily doubling the pre-COVID reach. Schools came back, with special initiatives like hosting the giant puppet “Walk with Amal” (a global refugee arts project) drawing thousands of local children and families out to free outdoor performances. And while the Quarterhouse indoor performances restarted more cautiously (with limited capacities at first), even there the charity notched 103 shows attended by 6,903 people by the end of March 2022. Considering that social distancing only relaxed mid-year, that’s a robust rebound for the performing arts programme.

In 2022–23, community engagement settled into a new normal. With no Triennial to dominate the calendar, the focus shifted to rebuilding the routine annual programmes. The Folkestone Book Festival returned to its traditional November slot in 2022, after an online outing in 2020 and a one-off summer edition in 2021. Curated for the final time by the outgoing directors, the 2022 Book Festival offered 32 live and hybrid events spanning politics to poetry. It drew an audience of 4,207 (including 700 online viewers) – a solid turnout though lower than pre-pandemic peaks. A free Schools Programme during the festival helped boost youth engagement: 1,277 pupils and teachers from 15 schools took part in author events, either in person or via digital link, at no cost. Year-round learning activities also ramped up further. In total, “our extensive learning and engagement programme returned to pre-Covid levels,” reaching over 5,500 participants with 339 events during 2022–23. From after-school art clubs for children to new adult art classes, the charity offered opportunities for “all ages, genders, abilities, backgrounds and ethnicities” to get creative. One notable effort was the Young Animators Club, which continued and attracted 150 children (including special sessions for autistic youth). Another was deepening partnerships with local charities – providing free space and creative workshops for groups like MIND (mental health), KRAN (refugee youth), and Age UK, thereby extending arts access to vulnerable populations.

On the performance front, 2022–23 was a rebuilding year. The Quarterhouse staged 96 performances for a total audience of 8,996 – modest growth from the prior year as audiences gradually regained confidence in indoor events. The programming mix began to evolve to attract broader crowds, foreshadowing a strategic pivot that would come into full effect the next year. Even so, by spring 2023 Folkestone’s cultural life was clearly recovering: the Creative Quarter was “bustling” again in the summer of 2022, and combined attendance at the various events and venues that year (performances + book fest + workshops) easily exceeded 13,000 people.

2023–24 built on that momentum and in some ways surpassed it. The charity’s new strategy to boost audience numbers – focusing the Quarterhouse on more popular late-night music, comedy and DJ events for younger crowds – yielded an 80% surge in attendance at the venue by the year’s end. While exact figures aren’t stated, this implies roughly 16,000+ attendees for shows in 2023–24, a huge jump from ~9,000 the year before. Financially, it also meant much improved ticket revenue. The 2023 Book Festival, under fresh local curatorship, was scaled a bit smaller (a 10-day “hyper-local” programme) but still sold 2,711 tickets to 38 events and reached another 1,471 children through its schools outreach. Overall community participation climbed again: the Learning and Engagement programme offered around 250 sessions taken up by 8,000 people during 2023–24 – the highest participation number of the five-year span, even without a Triennial boost. From life-drawing classes for adults to family craft workshops and school projects linked to the upcoming 2025 Triennial, the charity broadened its educational impact.

In summary, Creative Folkestone’s audience and engagement metrics mirror the era’s upheavals. The graph above illustrates it starkly: a vibrant 2019, a collapse to nearly zero in 2020–21’s “lost year,” an unprecedented spike in 2021–22 thanks to a marquee festival drawing global crowds, then a steadier climb back to strong local engagement by 2024. The ability to retain community interest – even grow it in new ways – despite lockdowns and uncertainties speaks to the charity’s creative resilience. As we turn to evaluating the “good, bad, and ugly” of this period, these numbers provide important context for what went right and what went wrong.

The Good: High Points and Strengths

Amid the volatility, Creative Folkestone notched remarkable successes between 2019 and 2024. These “good” outcomes not only fulfilled the charity’s mission but in many cases exceeded expectations:

• Record-Breaking Cultural Festivals: The Folkestone Triennial 2021 was an unequivocal triumph. Delayed but not diminished, it attracted approximately 220,000 visitors and delivered world-class contemporary art to Folkestone’s streets. The Triennial didn’t just draw art tourists – it engaged locals through dozens of free events and workshops, and left a legacy of public artworks for the town. A visitor survey found 88% felt the Triennial improved Folkestone as an attractive place to visit. Likewise, the annual Book Festival rebounded post-Covid with diverse speakers and solid attendance (over 4,000 in 2022, plus thousands more online). These festivals enhanced Folkestone’s reputation and proved the town’s appetite for culture.

• Effective Community Programmes: Creative Folkestone excelled at creative engagement for all ages. By 2023–24, its Learning and Engagement programme was serving 8,000 people a year through hundreds of workshops, clubs and events – from children’s after-school art classes to free sessions for seniors and vulnerable groups. Initiatives like the Neon Club and Young Animators Club nurtured local talent; partnerships brought arts to those who might not otherwise access them (e.g. programmes with mental health and refugee charities). The charity’s commitment to inclusion and diversity was noted by Arts Council England as “strong”. In short, CF delivered on Goal 1: “creatively engage the people of Folkestone” – thousands of them.

• Audience Growth and Innovation: Despite the pandemic’s blow, the charity managed to grow its overall audience reach through innovation. The pivot to digital content in 2020–21 not only maintained engagement but expanded it globally – e.g. Autumn Reads’ 70k online viewers. Social media followers jumped ~50%, laying a groundwork for marketing to new audiences. Then, the programming shift in 2023–24 to more popular genres led to an 80% surge in in-person audiences at Quarterhouse, attracting younger locals with club nights and comedy. By embracing change, Creative Folkestone emerged with larger and more diverse audiences than before.

• Strong Property Utilisation and Regeneration: A cornerstone of Creative Folkestone’s model – revitalising the Creative Quarter – continued to be a good news story. Backed by the Roger De Haan Charitable Trust (RDHCT), the charity now stewards around 90 renovated buildings housing creative studios, homes, schools and shops. Occupancy of these affordable spaces remained consistently high (~90–94%), even during Covid, thanks to rent relief and tenant support. Over 800 people now live or work in the quarter’s creative community. This has changed the face of Folkestone, turning derelict Old Town streets into a vibrant “urban village” of creatives and helping to create “hundreds of jobs” in the local economy. The “good” here is both social and economic: cultural regeneration in action.

• Notable Recognitions and Partnerships: Creative Folkestone’s work garnered awards and high-profile partnerships. In 2020, it partnered with Art Fund and Tate to secure Prospect Cottage, Derek Jarman’s house, as a new public asset and residency space. By 2024, Prospect Cottage had been internationally recognised as a “Treasure of European Film Culture”. The charity’s projects drew support from major funders like the National Lottery Heritage Fund, Paul Hamlyn Foundation, Henry Moore Foundation and even the European Union (via the CUPIDO and Hi3 creative industry programmes). These endorsements speak to Creative Folkestone’s credibility and ambition on a national and European stage.

• Financial Resilience Building: Lastly, amid challenges, the charity took steps toward sustainability. It increased its free cash reserves from near-zero a decade ago to over £1.4 million by 2023 and £1.83 million by 2024. The trustees instituted a reserves policy and even designated funds (about £83k a year) to ensure future Triennials are partially pre-funded. This prudent planning paid off when crisis hit. The Board noted that having built up cash reserves “improved its resilience” during the Covid shutdown. Surviving 2020 without incurring debt – and ending 2024 with a surplus – is a significant good result in the arts sector.

In sum, Creative Folkestone’s strengths shone through in its cultural programming quality, community engagement depth, adaptive innovation, and the physical transformation of Folkestone’s Creative Quarter. These “good” elements provided a strong foundation – and many joyful outcomes – even as other aspects faltered.

The Bad: Challenges and Missed Targets

Not everything over 2019–2024 went according to plan. Creative Folkestone faced several “bad” outcomes or shortfalls – areas of underperformance, delays, or goals not met. These include:

• Pandemic Cancellations and Lost Momentum: The most obvious “bad” was the forced halting of nearly all live programmes in 2020–21. The Folkestone Book Festival 2020 was canceled (breaking its annual streak), most performances were axed, and the Folkestone Triennial – the flagship event of 2020 – had to be postponed by a year. This represented not only lost audience opportunities and revenue, but also lost momentum. For a year, the Quarterhouse theatre remained dark, and some of the community habit of going out to arts events had to be rebuilt from scratch later. The trustees frankly noted that by mid-2020, they planned for Quarterhouse “to remain closed to audiences” well into 2021 and would instead “concentrate on younger talent development” in the interim. Despite creative pivots online, the lack of physical gatherings was a significant blow. It took time and effort to lure people back in 2022 – initial audience numbers for in-person shows (e.g. only ~6,900 at Quarterhouse in 2021–22) were a far cry from the 23k pre-pandemic. The gap in programming also meant missed artistic targets, such as fewer artist residencies and international collaborations during that period.

• Underperformance of Core Income in Some Years: While grants filled the breach, there were signs that earned income targets were not always hit. For instance, in 2019–20 the charity expected to have two newly refurbished properties generating rent, but construction delays meant reduced rental income and a budget shortfall on that line. Likewise, bar and trading income from Quarterhouse fell (from £123k to £96k) as one major festival was moved and fewer events took place. In 2021–22, despite high overall income, the unrestricted income (from operations) was insufficient to cover unrestricted costs – resulting in a £380k deficit on core activities that year which had to be subsidized by dipping into general funds. This indicates that some programmes (possibly the vast array of Triennial public activities and the expanded staff and marketing around it) cost more than they brought in through sponsorship or sales. The following year, 2022–23, showed how fragile income could be without major events: total income fell well below plan (nearly £700k under the prior year’s level even excluding big grants). The trustees in late 2022 had to acknowledge a “changed economic environment” and refocus on income generation, as rising costs and flat revenues put pressure on the charity. Hitting fundraising targets was also flagged as an ongoing risk – the Board identified “failure to hit earned income and fundraising targets” as a principal risk every year, mitigated only by investing in the development team.

• Stalled Capital Projects: Another challenge was delay in completing key capital initiatives. The annual reports mention that Phase III construction in the Creative Quarter – including the Mill Bay “Cabins” (studio spaces) and the last derelict buildings on Tontine Street – “experienced significant delays” and were not finished when expected in 2019–20. The pandemic further slowed construction supply lines. The Mill Bay Cabins ultimately weren’t handed over until September 2021, about a year late. Such delays meant postponed benefit: artists and makers had to wait for new spaces, and the charity missed out on rental income in the interim. These projects did get done – Mill Bay is now complete – but the holdups were a frustration in the mid-term.

• Audience Diversity Gaps: While overall audience numbers grew, the charity recognized some gaps in who was engaging. A survey of the Board in 2019 found it lacked diversity (particularly in gender and ethnic background), prompting a pledge to recruit more diverse trustees. On audiences, the charity noted that although attendance broadly reflected the local population, certain groups were underrepresented – for example, men were underrepresented in the staff and perhaps the audience base too. The “young adults 15–30” demographic was a specific target for improvement; a new partnership with a local college was started to reach more young people in that range. We can consider it a “bad” that some community segments weren’t fully reached until these efforts ramped up. The uptick in youth-oriented programming by 2024 suggests they realised they needed to do more to attract younger audiences (hence the shift to gigs and late-night events).

• Ongoing Cost Pressures and Scaling Back: By 2023, another challenge appeared: the cost-of-living and energy crisis. Inflation drove up utilities and wages, straining budgets. Arts Council England gave NPOs like Creative Folkestone leeway to cut output by 15% without losing funding, implying that the charity had to scale back some programming to reduce costs. Indeed, in early 2023 they embedded cost-cutting measures from the year before and concentrated on the most profitable events. While financially prudent, this means some less-lucrative artistic experiments or community events might have been shelved. The delay of the next Triennial from 2024 to 2025 – a strategic move to align with a major Levelling Up-funded public realm project – could also be seen as a scaled-back schedule in the interim. Folkestone will go a year longer than planned without its marquee art exhibition. These are tactical decisions, not failures, but they underscore that not every ambition could be immediately pursued; some plans had to be put on hold for stability’s sake.

In essence, the “bad” of 2019–2024 revolves around external shocks and internal shortfalls that hampered Creative Folkestone’s otherwise positive trajectory. A global pandemic stopped the shows and stalled growth. Key revenue streams underperformed at times, requiring retooling of strategy. Some initiatives took longer than hoped, and inclusivity remained a work in progress. None of these “bad” outcomes derailed the organization – but they did present learning opportunities and prompted reforms that shaped subsequent recovery.

The Ugly: Hard Truths and Risks

Finally, we come to the “ugly” – the serious issues and structural vulnerabilities that underlie Creative Folkestone’s story. These are the realities that, while not always evident in daily operations, pose significant long-term concerns:

• Dependence on Key Funders (RDHCT and ACE): Creative Folkestone’s greatest strength – the patronage of Sir Roger De Haan and the charitable trust he chairs – is also a great vulnerability. The Roger De Haan Charitable Trust (RDHCT) is deeply entwined with the charity’s existence. It owns most of the properties (valued at ~£12 million) that Creative Folkestone uses; it leases them at peppercorn rent on 125-year terms. It also frequently bankrolls capital projects – buying and refurbishing buildings, funding public art commissions, and even co-sponsoring festivals (through initiatives like the joint “Festival Fund”). In 2021–22 alone, RDHCT’s contribution can be inferred in the £1.7 million restricted donation on the books. The ugly truth is that Creative Folkestone would struggle to survive or grow without this benefactor. The trustees openly acknowledge that the high level of restricted funds on the balance sheet “relates principally to the charity’s properties… [which] may never be realised by the charity”. In other words, much of CF’s “worth” is actually RDHCT’s ongoing support. If, for any reason, the De Haan Trust pulled back (for instance, upon a change in leadership or priorities), the charity would be hard-pressed to maintain its assets or undertake new developments. Similarly, the charity has been an Arts Council England National Portfolio Organisation (NPO) for many years, securing core grants. ACE extended its funding through 2023, and CF will rely on ACE in upcoming years as well. The reliance on these key donors is an inherent risk. As one report put it, funding from the Arts Council is secure for at least three years and rental income “has so far held up well,” but beyond that, certainty fades. In short, Creative Folkestone’s bold work remains fragile without its cornerstone funders – a classic arts sector predicament.

• Major Financial Shortfalls Averted by One-Offs: During this period, there were moments when the charity’s financial viability was saved only by emergency measures. The clearest example: without the Cultural Recovery Fund grant and other Covid relief in 2020–21, Creative Folkestone would likely have faced a dire deficit that year. The government and ACE stepped in with lifelines (over £237k from CRF, plus furlough support). The charity also drew down on its reserves to get through months of no earned income. This revealed an uncomfortable truth: earned income alone does not cover operating costs. The organization’s model, like many arts charities, counts on subsidies and fundraising to break even. In 2022–23 we saw the effect again – a nearly flat result only achievable because costs were cut to match reduced income. The trustees have wisely set a reserves target (£250–400k in free reserves) to buffer downturns, which they exceeded by 2020. But if another crisis hit or a big grant didn’t come through, the charity could burn through that reserve quickly (its monthly running costs can be estimated in the hundreds of thousands, given staff and programme outlays). So the ugly reality is a financial tightrope: one bad year or loss of a major sponsor could cause a significant shortfall. The presence of designated “Triennial reserve” funds (£459k set aside for 2021’s event) was a smart move, but it also underscores that such events are too costly to mount without years of saving or external injection.

• Staff Turnover and Strain: The human side of the operation has also seen churn that could be considered “ugly” in impact. The pandemic-forced redundancies meant some skilled staff were lost in 2020. Although many were furloughed and returned, the disruption and increased workload on remaining staff were significant. In late 2023, the long-serving Deputy CEO, Fiona Kingsman, resigned, necessitating a leadership change in a critical role. Several trustees also rotated off the Board (e.g. the retirement of a founding trustee, Timothy Llewellyn, and others). Continuity of vision can be a concern with such turnover. Moreover, there’s an implicit dependency on certain individuals – not least Chief Executive Alastair Upton, who has been a driving force and the public face of Creative Folkestone throughout this period. He is also a trustee (an unusual arrangement, but his remuneration is disclosed: ~£95k salary). Should leadership change abruptly, it could challenge the charity’s momentum. The “key person risk” was noted by trustees: loss of key Board members or staff is listed as a principal risk factor. To mitigate it, they have succession planning and cross-training, but it remains a risk. In short, the reliance on a small, passionate team and a single visionary benefactor is an Achilles heel – if any falter, the charity would face turbulence.

• Hidden Deficits in the Arts Ecosystem: Lastly, an “ugly” broader truth highlighted by these five years is that arts organizations operate on knife-thin margins and require constant juggling of funds. Creative Folkestone’s accounts show a large surplus one year and a tiny one the next, but those surpluses were largely non-cash or pre-allocated. The cash flow statements reveal the real story: for instance, in 2021–22 the charity had a net negative cash from operations of £429k, meaning it spent more cash than it received for its activities, and only by drawing on prior funds did it manage. These kind of underlying deficits are common in the arts – “jam tomorrow” promised by funders for big projects, while core operations struggle today. It’s a systemic issue, not the charity’s fault, but it’s a tough reality that CF must navigate. They must constantly fundraise not just for glitzy new art, but to keep the lights on and staff paid. The Board candidly states that, historically, CF did not build reserves because it was in a “development phase,” instead plowing everything into its mission. Only recently have they tried to accumulate a cushion. The implicit fragility – that artistic ambition can outpace financial stability – is an ever-present concern (one could call it the ugly side of dreaming big).

In conclusion, these “ugly” points underscore that behind Creative Folkestone’s inspiring projects lies a delicate support framework. A heavy dependence on a few funders, the potential for major financial gaps, and the reliance on key individuals all pose existential questions. The charity has thus far managed these risks adeptly – diversifying funders where possible, saving reserves, and retaining talent – but they remain pressures beneath the surface.

As Creative Folkestone moves beyond 2024, it does so with eyes wide open to these challenges. The next Folkestone Triennial is slated for 2025, promising another infusion of energy, visitors and yes, financial risk and reward. The organisation’s ability to continue transforming Folkestone “creatively” will depend on how well it can shore up its foundations while reaching for the stars. The past five years have proven its resilience amid upheaval. If it can tackle the structural issues – turning more visitors into sustainable income, widening its base of support, and institutionalizing its successes – then the good will continue to outweigh the bad and the ugly in the story of Folkestone’s renaissance.

The Shepway Vox Team

The Velvet Voices Of Voxatiousness