The combined value of earned and contributed income generated by NPOs in London has grown by £71m since 2010, but the North East has seen growth of just £1m over the same period.
A ten-year plan and a new approach to funding aim to demonstrate more support for arts organisations and provide greater clarity about its role and remit.
Public support for the arts has grown over the past 12 months, with improved access being top of the list of objectives for public funding.
A withering letter signed by senior academics raises serious concerns about the recent ACE review of the impact of the arts and the lack of scholarship and consultation with researchers in the field.
ACE warns that relying too heavily on an unpaid workforce could jeopardise the chances of organisations achieving NPO status.
Demonstrating the effectiveness of arts interventions in dementia treatment will be key to unlocking funding, says new report.