The arts sector could be getting a new source of income as a pilot initiative seeks to bring social investment, common elsewhere in the charity sector, to the arts.

Arts Ventures, an initiative which will attempt to marry up social investors with arts organisations wanting non-grant income, is currently looking for arts organisations interested in taking part in the pilot programme. The initiative is being set up to fund capital developments or boost earned income at arts organisations.

The Arts Ventures Fund Group is backed by a number of organisations, including the Rayne Foundation, Poet in the City, Investing for Good, Live Theatre and Mission Models Money.

Rayne Foundation director Tim Joss said that many organisations are looking for alternative income streams in light of public spending cutbacks.

“The rest of the not-for-profit sector is way ahead of the arts in finding solutions to this, and this scheme aims to offer arts organisations the opportunity to develop viable capital projects, but also to reduce their long-term dependence on public sector funding,” Joss told Arts Professional magazine.

A statement from Mission Models Money, which is hosting the scheme, said that while similar investment is available through organisations like Triodos and Venturesome, that arts and culture organisations need a different type of finance.

“Our assessment of the market is that the sorts of financing that arts and cultural organisations most need - high-risk capital to develop new ventures and underwriting (money allocated and called down if needed) to underpin cashflow are in relatively short supply - at least relative to the potential demand,” the statement read.

A survey is now circulating among arts organisations to determine interest in social investment income and to identify organisations willing and able to take part in a pilot of Arts Ventures.