At a time of uncertainty and financial challenges, Arts philanthropy: the facts, trends and potential, aims to assess the potential of individual giving for the arts and where the growth can come from.
Based on the current trends and how and why they are changing, the findings suggest that growth will come from those already interested in and engaged with the arts.
Key findings of the report include:
• The year-on-year trends of individual giving to wider charitable causes and the arts in particular, suggest that philanthropy is far from reaching a plateau
• Only 52% of the sector currently receives any individual giving
• Only 2% of philanthropically active individuals contribute to the arts. NCVO/ CAF (forthcoming) UK Giving 2010
• In 2008 individual giving grew by 25% above inflation to reach an all-time high of £382 million
• Individual giving decreased by 7% primarily in light of the recession and a particularly high one-off donation received the year before, to stand at £363 million by the end of 2008/09
• Individual giving increased by 4% in the English regions, even in light of the recession and a national average of 7% decrease, and after a 38% increase from the year before
• Individual giving accounts for on average 8% of arts’ total income
• 73% of arts organisations increased their fundraising activities in the past 6 months and 48% increased their marketing and online drive
• The lack of memberships within smaller organisations is more of a supply rather than demand-led issue
• Legacies are undercapitalised by the arts, with only 8% attracting this source of income, though they are incredibly lucrative for other charitable causes, estimated to be worth around £1.9 billion a year
• More people attend the arts than are philanthropically active to all charitable causes combined
• The potential for the arts is therefore not necessarily in attracting a greater slice of the existing philanthropy pie, but in turning more individuals who engage with the arts into supporters
• An overarching increase in tickets and attendances, as well as sales from gift-shops and cafes/ restaurants, suggest that audiences are prepared (and able) to attend more often and spend more during their visit
• Collaboration and innovation within the sector will be the way forward as maximum impact will be expected with minimum resources
• There is also potential for growth from the higher (but not highest) -end of the market
• The ‘mass affluent’ allude to the arts’ competitive advantages, namely their creativity and their entertainment value as ways that would make them increase their philanthropy to the arts.
The report concludes that though philanthropy will not be able to fill the imminent gaps from public funding, targeted interventions and campaigns will help: Friends schemes, crowdfunding, and mobilising the ‘mass affluent’ could ensure growth in the medium to long term.
For more information on private investment trends, visit our Reserch section