What really happened in JST’s £1 million appeal?

Is the Jubilee Sailing Trust pushing the boundaries of good governance? asks Peter Cardy (career charity analyst, and volunteer watch leader with JST for over ten years) as he explores the ‘emergency’ fundraising call that left the sail training world perplexed.

For forty years the Jubilee Sailing Trust (JST) has been taking people of all abilities to sea in its two purpose-designed sail training ships. It has succeeded in enabling thousands of people to sail in spite of disabilities that would create impossible barriers in conventional ships. Its achievements cannot be exaggerated: it has changed the lives of so many people.

But on 28 June 2019, JST unexpectedly launched an emergency £1m appeal. The money was said to be required within a week, otherwise the charity would be compelled to cease activity. This came shortly after JST stated in a letter to supporters that the charity had broken even for the previous year.

In its annual report published 31 March 2018 on the Charity Commission website, JST stated that “P&L remains volatile and our cash position tight (but manageable).”

None of its public communications hinted at the drama about to unfurl.

So what was the surprising appeal for?

Supporters and donors expected that their donations would secure the future of the Trust and its much-loved barques, Lord Nelson and Tenacious.

Although the fundraising announcement had stipulated ‘unrestricted funds’ were needed, it also referred to ‘substantial mechanical issues across both ships’ and supporters drew their own conclusions, right or wrong.

Affection for the Trust and its two barques ensured that the deadline was met and the target exceeded, with many small gifts and some large ones. JST’s first response was not to announce how the money would be spent, but to set up a working party to decide how to use the new funds. This immediately raised the hackles of supporters. After all, given that it was billed as an emergency, why did it take so long to decide how to spend the money raised?

In early July 2019 Duncan Souster, then JST’s CEO, enthusiastically stated that JST would be “focused on making the most of the support and ensuring we build a bright strong future for the Trust, looking at the size of fleet, how it’s deployed, and the sorts of work JST does.”

He continued: “We need to think carefully about strategy for that and to make sure we take the fleet forward in best way.”

The clue was in the thank you message ‘looking at the size of fleet’, which consisted of only two vessels. But it was still surprising to many supporters when, shortly afterwards, the trustees announced that Lord Nelson was to be decommissioned. (Efforts continue to find a home where she can be a static attraction alongside; an outline activity programme and financial model have been proposed.)

Underlying problems

The financial difficulty has been developing for years according to JST’s year-end report. The Trust was saddled with continuing debt from its heroic project in 2000, building Tenacious. Built by a mix of skilled shipwrights and unskilled volunteers, both disabled and able-bodied, there are so many unique aspects to the ship and the build that in order to comply with regulations, costs far exceeded estimates. Continued fundraising has been essential but has failed to bridge the underlying financial gap.

In recent years Lord Nelson and Tenacious have each undertaken a round-the-world-voyage intended to create new markets and new income streams, particularly in the Antipodes. Perhaps for lack of a customer base and adequate marketing neither voyage succeeded financially, and also left a backlog of maintenance.

Adding to this challenging situation, arguably an inappropriate management model was introduced. Duncan Souster was appointed in 2014. A CEO with a city background, he was at the time a trustee of the charity. Such an appointment always raises eyebrows in the charity world, even if done with complete propriety. Eyebrows were raised even further by the salary of £100k, exceptional for a charity with only £3m turnover.

A string of highly-paid appointments to new senior roles followed, more suited to a corporate body than a modest charity. By 2018 the charity visualised a staff complement of about 46, of whom as few as 18 were sea staff. The numbers were very much larger in proportion than in other sail training charities, and the resources devoted to ships and shore were reversed.

Signals that not all was well began to surface. The sea staff noted that big salaries had become the norm ashore but their terms were little improved, while they daily took personal responsibility for the lives of large numbers of vulnerable people. Routine maintenance suffered; even safety was sometimes underfunded. The sea staff had difficulties when port and other charges were unpaid. According to volunteers and staff, past and present, there was sometimes insufficient cash even for basics such as paint.

Secrets revealed and leadership upheaval

Shortly after the appeal ended, it publicly emerged that the ‘emergency’ had been anticipated. The Trust toldThird Sector journal that it had reported a Serious Incident (meaning an episode that might threaten the continued viability of the charity) to the Charity Commission in January 2019, and updated the Commission in June.

The signs were there all along, but were not communicated to supporters.

“Our financial problems are neither recent nor sudden but as one of the directors, who would be personally liable if we did not behave responsibly, I know we had no choice,” says Tom Stewart, JST Board of Trustees, on JST’s Facebook page (July 3rd), of the appeal. “We have been working hard out of the glare of Facebook to secure funding, to engage with the powerful and wealthy, and to manage our scarce resources responsibly – not sitting idly by.”

After such an upheaval it was widely expected that the CEO and chair of trustees would be replaced and indeed on 18 November the Trust reported that the CEO would step down at the beginning of December.

He is replaced by Patrick Fleming, former Director of Development at the British Library. Fleming had applied for the Development role, but was invited to take on the CEO role as well.

Shutting down speculation

No information about the financial packages for the Development or CEO post has been revealed, but JST has reacted strongly to comment and speculation. Among those looking for more information was Colette Whelan, a long-standing supporter who repeatedly queried JST’s public statements about financial and other decisions. She was told by James Crill, chairman of trustees, that her questions would no longer be answered. He claimed that the Trust was under no obligation to reveal more than is required by Companies House and the Charity Commission. Many supporters feel that, having given so generously to the Trust, it should be equally generous in explaining its decisions and reasoning.

In the absence of information, supporters and volunteers have been reaching their own conclusions. Fred Normandale is an accomplished professional fisherman, author and volunteer of over 20 years, who had vigorously challenged the course of events. He arrived to join Tenacious in Lisbon but was told he would not be allowed to sail. A defensive statement about salaries had to be issued on behalf of the Trustees about compensation, bonuses, and expenses.

Widespread concern was expressed among the UK’s other 30+ sail training organisations at their autumn 2019 meeting, that the Trust’s actions have damaged the reputation of sail training generally. In appearing to ‘cry wolf’ they felt that JST has poisoned the water for genuine emergency appeals. The Trust’s raft of highly-paid appointments is considered to have distorted expectations across the sector. The unorthodox route to appointment of the previous, and the new, CEO is felt to be pushing the boundaries of good governance.

So what really happened with the JST £1 million appeal? A charity which has done fabulous work over the years, changing lives for the better, experienced an unprecedented outpouring of goodwill. But whether the new CEO can retain it remains to be seen.

The Jubilee Sailing Trust declined to comment.

12 responses to “What really happened in JST’s £1 million appeal?”

  1. alan fisher says:

    Very well summarised Peter. I’ve been volunteering with the JST for 23 years now, and I’m still shocked with the announcement of the decommissioning of Lord Nelson, after so many people contributed to the Emergency Appeal which we thought would save the Trust. How they treated Fred Normandale, one of the most respected and liked volunteer, is beyond belief. Lets hope the new CEO can turn the situation around, and continue the excellent work that the Trust does for many years to come.

    • Zella Compton says:

      Thanks for taking the time to comment, we’ll pass your note along to Peter!

      Best wishes, Zella

  2. Anonymous says:

    JST Leadership refused to respond to my reports of voyage crew at risk from unqualified medical crew. No clinical oversight or governance at sea, out of date medical supplies and qualified medical crew not being supported to maintain relevant skills. I won’t even mention the lack of any DBS checking and significant safeguarding concerns.
    The majority of permanent crew and volunteers deliver an amazing experience to voyage crew- despite the leadership.

    • Zella Compton says:

      We’ll raise these concerns when we follow up to this story – hopefully Spring. Thanks for taking the time to comment.

      Zella

  3. Betty Renz says:

    I/we have always felt management of the JST has a hidden agenda which explains their oft refusal to disclose real intentions. The way they took revenge on Fred who only spoke out as we all felt, was disgusting. They have destroyed huge volumes of support. They have destroyed the JST we held so close in our hearts. If they continue to ignore the heartfelt messages of how to save JST the demise of this most wonderful charity will be on their heads. (31 years a yoyager, maintainer, and supporter)

    • Zella Compton says:

      Hi Betty
      JST are aware of this article, and no doubt the heartfelt comments. I hope that this will help to further highlight the passion of those involved. I’ve mentioned to a few others that we hope to follow up on this story later in the year.
      Best wishes, Zella

  4. Geoff Holt says:

    JST: A charity built on a phalacy. JST’s USP has always been disability, pictures of wheelchairs up masts. But look a little deeper. No powered wheelchair users permitted (myself included), few, if any people with mental disabilities and no profound and complex disabilities. Then look at the actual numbers in their latest report. Just over 600 disabled people across 2 boats with a total annual expenditure of £5m. Is any ‘charity’ really worth that cost/head? Yet most of their PR and fundraising is on the back of ‘disability". Less than 1/3 of participants are disabled and, only then if they fit the approved disability profile. And how can a charity registered in England & Wales for the benefit of disabled people allow its boats boats to sail the world’s oceans, far from our home shores charging prices (plus air travel) way beyond the means of disabled people/supporters in the UK. The Charity Commission should investigate their affairs. Duncan Souster once said to me (before he knew my background), "it’s not possible for powered wheelchairs to go on offshore sailboats, it is dangerous and the salt water is not compatible with electrics". 2 months earlier, I had just sailed the Atlantic in my electric wheelchair on a yacht half the size of Nelson or Tenacious. I have written numerous times telling the JST to be honest in their fundraising, to stop using disability as an emotive hook, and to admit how they wilfully exclude a whole raft of disabilities and in reality, just how few disabled people sail with them.

    • Zella Compton says:

      Hi Geoff
      Thanks for your comment. We’ll be following this up later in the spring, and will aim to raise your points then.
      Best wishes, Zella

  5. Mike Wood says:

    MISTAKES?, LIES?, FRAUD? Or artistic license?

    Thank you for this article it is not before time. There is one serious mistake and some relevant omissions.

    An important error, you quote, "For forty years the Jubilee Sailing Trust (JST) has been taking people of all abilities to sea in its two purpose-designed sail training ships."

    This is simply not true. JST have never allowed ‘all abilities’ to sailing on their ships, I am disabled have been refused on a number of occasions. Wheelchair users have been refused on some voyages, all the electric wheelchair users I know have been refused as are all the people I know with Learning difficulties. How do you equate this with ‘all abilities’. JST have misled people on this matter for some 40 years, is this clever PR, artistic license, lies or fraud, I would be interested to know.

    Second, you quote "It has succeeded in enabling thousands of people to sail". Well this may well be true but I think people should have a little more information on this subject.

    1. According to JST Charity Commission reports in 2018 JST spent £4,975,037 ( almost 5 million ) taking about 826 disabled people sailing. That equates to £6,023 per person. I do not think this is good value for public money, do you?

    2. According to the 2018 JST Annual report, “JST is proud to have delivered over 50,000 transformative adventures at sea”. If JST had taken 826 people every year since they started, ( according to other JST annual reports the average number per year over the life of the charity is nearer 500 ) 40 x 826 is 33,040 so who/where are the other 17,000 odd people from.

    3. From my understanding of JST accounts the Charity is over £5,000,000 in debt, how can this be allowed to continue?

    There is so much more questionable material shall I go on???????

    • Zella Compton says:

      Thanks for your comment Mike. We are hoping to follow up this story later this year, and will take your comments onboard.
      Best wishes, Zella

  6. Hellen kolala says:

    I want to join how can I come and get a job their? I’m also disabled I use a wheelchair I had polio when I was six months

    • Zella Compton says:

      Hi Hellen

      You’d have to go directly to the charity’s website and look for answers there. There’s a link in the text above.

      Thanks, Zella