News

Arts funding falls 7 per cent in a year

Fundraising | Stefan Marseglia | 13 Jan 2010

Donations to the arts fell by 7 per cent last financial year, declining nearly equally across individual, corporate and trust fundraising streams.

British arts bodies received £654.9m in voluntary donations in the 2008-2009 financial year, according to analysis published by Arts & Business today – a fall 7 per cent above inflation on the previous year’s levels. This drop comes after a record high in 2007-2008 of £660m.

Donations from trusts and foundations and individuals fell the most at 7 per cent each, while corporate investment also took a blow - declining by more than 6 per cent.

Today’s figures contrast with a steady longer-term rise in non-government funding to the arts; another Arts & Business study released last year reported a two-fold increase in individual giving to the arts over an eight-year period.

The worst, however, may still be yet to come. Collin Tweedy, chief executive of Arts & Business, anticipates that 2010-2011 will be the low point in arts fundraising income.

“In this fiscal climate there is still enormous pressure on the arts,” said Tweedy. “These latest figures show a reduction, though not a disastrous one.”

Donations are expected to pick up by 2013, according to Tweedy. However, he also warned that any cuts in government investment in the arts (which currently accounts for 53 per cent of arts  bodies’ income) could encourage a similar downturn in private giving.

Voluntary income still makes up a relatively small proportion of arts bodies’ total income, at 15 per cent.

Policy proposals

The organisation has proposed a three-pronged policy initiative to stem any further downfall in voluntary income.

”For arts and culture to continue to flourish Arts & Business is calling for three policy initiatives to stimulate private sector [voluntary] funds,” said Tweedy. “Firstly new far-reaching incentive schemes to encourage business.

"Secondly. the training and knowledge to deepen a pro-enterprise and innovation culture throughout the arts. Thirdly, we propose new challenge funds to grow and inspire cultural philanthropy.”

But not all arts bodies were affected equally, with donations to visual arts organisations rising by more than 15 per cent, and music by over 3 per cent.

Tweedy said a change is needed to entice potential future culture donors.

“Be clear – there is no magic bullet for cultural philanthropy. We need better use of existing and new tax incentives, enhanced donor care and the training of the real skills to make the case for culture to potential donors,” stated Tweedy.

Picture - 2007 'Do Something Different Weekend'. Credit: Matt Stuart. 

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