Trust and individual support for the arts grows, but London takes the lion’s share.
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Total private sector investment in the arts and cultural sector grew by 7.6% between 2010/11 and 2011/12, providing just over a fifth of all arts funding in England and amounting to £660.5m – a rise of £46.8m. Almost 90% of all money donated by individuals and 67% donated by businesses went to London-based organisations, fuelling concerns that the cultural sector outside of London is being disproportionately affected by the recession. Headline findings from the new Arts and Business report, ‘Where is Private Investment in the Arts Going?’, also reveal that the strength of the arts sector in the different regions of the UK is not reflected in the amount of private funding they receive. Cultural organisations in the East of the country rank third in employment and Gross Value Added, but only rank seventh out of nine in terms of the private sector income raised, and the report suggests that an arts organisation’s fundraising potential is more likely to be linked to its own attitudes to philanthropy than the strength of the local arts sector as a whole.
Trust-giving to arts and heritage has risen by 15.8% over the previous year, though it is not clear whether this represents a change in Trust priorities or greater demand from arts organisations. The report warns that this source of funding is potentially unsustainable as some Trusts may be spending more than they can afford in the long-term, based on the performance of their endowments, to support cultural causes in a difficult financial climate.
Individual giving to the arts has risen by 6.5% – almost £23m – to a total of £372.9m. The breakdown of how individuals support the arts remains consistent with previous years. Membership schemes are still the most popular, accounting for nearly 58% of individual giving, whilst donations account for 23%. Legacy income, which grew significantly in 2009/10, accounted for 19% and was the third most popular source of donations.
In contrast, business support for the arts was virtually static, rising from £113.6m to £113.8m. Business donations, which in 2008 accounted for 15% of total business support for culture, have fallen to 12%, but sponsorship continues to account for around 60%. The value of structured business membership schemes run by arts organisations, through which businesses receive a series of benefits over the year, has risen slightly.
Commenting on the research findings, Philip Spedding, Director of Arts & Business, said: “When compared to the state of the economy… this looks like a remarkably robust show of support for culture. It is a clear testament to a consistent recognition within the business community that their arts partnerships do add value.”