Fundraising Management: Sponsorship, Philanthropy, and the State
Introduction: fundraising management, sponsorship, philanthropy and the state
This lecture
The first half will introduce the course:
Module organization.
Teaching team
Readings
Assessment
The second half will introduce fundraising and funding in the UK Creative Industries.
Part one: Welcome to the course!
Module aims
1. To equip students with knowledge about the various income-generating mechanisms available to the cultural and creative industries sector.
2. To critically assess the dis/advantages of such income-generating sources
3. To provide students with a variety of case studies about the impact of sponsorship, philanthropy and government funding on cultural and creative organisations
4. To discuss the role of cultural policy in facilitating the provision of financial income to the cultural and creative sector
Learning outcomes
1. To gain in-depth knowledge about the various streams of income-generating mechanisms available to the creative and cultural industries
2. To critically analyse the benefits and disadvantages of reliance upon private/public sources of finance
3. To be able to assess the role cultural policy plays in facilitating public/private investment in the creative industries sector
You can also search these journals:
International Journal of Arts Management
International Journal of Cultural Policy
Journal of Business Ethics
Nonprofit and Voluntary Sector Quarterly
Journal of Nonprofit & Public Sector Marketing
Cultural Trends
The Sociological Review
Journal of Cultural Economy
Assessment (pending approval)
This module has one assessment that counts for 100% of your final mark. A 3，000 word essay.
ESSAY QUESTION: Choosing a case study of an organization in the Creative and Cultural Industries sector, discuss the advantages and disadvantages of at least one of the following sources of income revenue: philanthropy, sponsorship, digital crowdfunding and government funding.
Submission details: 27/05/2022, 12pm (noon)
Introducing key concepts in fundraising
This chart shows a funding breakdown for different creative sectors in the uk
Arts council (government funding)
Established in 1946. The Arts Council invests money from the National Lottery and the Department for Digital, Culture, Media and Sport.
£407 million per year in 828 arts organisations, museums and libraries in National Portfolio. This includes £336 million of grant-in-aid and £71 million of National Lottery funding.
£97.3 million of National Lottery funding per year in Arts Council National Lottery Project Grants, which is an open-access funding programme.
£72.2 million per year in our Arts Council Development Funds which will focus on diversity, resilience, innovation in business models, leadership development and creating more pathways for a wider range of people to become part of the arts and culture sector.
National portfolio organizations in Sheffield
Sheffield theatres trust
£5 million 2018-2022
The Crucible
The Studio
The Lyceum
Sheffield museums
£3.2 million 2018-2022
Abbeydale Industrial Hamlet
Graves Gallery,
Kelham Island Museum
Millennium Gallery
Shepherd Wheel
Weston Park Museum
Sheffield docfest
£563,000 between 2018-2022
Other arts council funds (open 2022)
Contributed income
One off donations
Regular donations
Fundraising events
Sponsorship
Trusts and foundations
“In the UK the terms ‘foundation’ or ‘trust’ are used interchangeably to describe charities with private, independent and sustainable income that fulfil their charitable goals mainly by funding and supporting individuals or other organisations” – Associations of Charitable Foundations
They often come from family and legacy foundations, or corporate foundations.
They often give money through grants (but can do research, policy work and social investment).
Last year, the top 300 foundations in the UK gave over £4 billion in charitable giving - this is across sectors.
Not covered in the chart:
Corporate sponsorship
Many corporations give through foundations, but some also give through sponsorship. Corporations sponsor strategically to enact:
Brand differentiation
Enhanced brand image
Improved employee recruitment
Morale, and retention
Demonstration of shared values with the target market; enhanced government relations;
Broadened customer base,
The ability to reach new customer segments
Crowdfunding
Since the early 2010s, artists can also use online crowdfunding platforms to raise money for projects.
Crowdfunding is defined as a process in which :“an entrepreneur raises external financing from a large audience (the ‘crowd’), in which each individual provides a very small amount, instead of soliciting a small group of sophisticated investors” (Belleflamme et al., 2014: 1)
crowdfunding
Four types of crowdfunding:
Reward based – when individuals contribute money and get a benefit (like special merchandise)
Lending based - (when individuals contribute and access to the project when its completed, but no special benefit)
Equity – when donors will receive shares in a company (although this is subject to strict regulations)
Donation based – when individuals do not expect a reward or benefit
In summary
We have introduced some of the different forms of arts and culture funding in the UK.
Throughout this course we will look more closely at these sources of funding and fundraising, and reflect on their positives and limitations using different cases and examples.
Think about your own case studies to bring to class: what differs across sector, and by geographic and cultural contexts?