David v Goliath: Is mega philanthropy possible for smaller arts organisations?

It is reassuring to see recent examples of seven and eight figure donations from going to institutions like The Courtauld, the National Gallery and the Science Museum. Given their quick succession, it is possible to see them as part of a trend, albeit one led by inspiring leadership teams who have invested in this area over many years.

Large-scale donations have become a critical and increasingly prominent feature of the funding landscape for major UK museums and galleries, as they adapt to a new era of mixed-funding models. However, smaller and regionally-based museums are as dependent as ever on statutory funders and trusts.

An American style of philanthropy

It isn’t surprising, given the decline in public funding, that major institutions have adopted American-style philanthropy models to ensure financial survival and to fund major projects. Entrepreneurs such as Bill Gates and Mark Zuckerberg have brought what I term a ‘fix-it’ style philanthropy: the drive to solve things, to take on major global challenges such as eradicating malaria or indeed all disease.

This solutions-based approach is difficult for the arts to emulate. We’re not in the market to ‘fix or solve’ but we can replicate the sentiment via bold asks, ambitious targets and large-scale networking, reaching into international markets, such as the recent donation from India secured by the Science Museum. 

The donor of this landmark contribution, Adar Poonawalla, gave a summation that focuses squarely on the promotion of science as the driver: “With this contribution… we strive to inspire the future generations and celebrate the incredible journey of science that shapes our world.”

Donors often want to associate with high-profile causes – and major institutions such as the National Gallery are working extremely hard to position themselves as attractive to major donors as possible, with endowments, naming opportunities and large-scale projects up for grabs. 

Fewer donors giving more

The perception of a decline in overall donations from the public is backed up by the Charities Aid Foundation. And the data tells us that increasingly charities are reliant on a smaller cohort of donors doing and giving more.

These donations often involve long-term partnerships, such as the sharing of private art collections for public display, as in the case of the Reuben Foundation and The Courtauld. Elsewhere, newer funding is being established often in less visible structures, flowing through private or bespoke channels, making networking imperative.

Since the Covid pause in normal operations, traditional opportunities to meet donors have waned. But if partnerships are to be central to fundraising in a challenging economic context, then organisations need to have appropriate infrastructure for success. Ensuring brand alignment is only part of the story. Access to such funds begins with a conversation or recommendation. If you are lucky, your reputation may just go before you…

In the case of Anastasia Bukhman, her philanthropic journey with the National Portrait Gallery was steered by seeking advice and learning about how to support the arts. A conversation with a high net-worth individual seeking to make an impact is never wasted: “Initially I thought they wouldn’t be interested in us supporting them. I felt as if we are not the right people, I was quite amazed that we could support an exhibition by an artist.”

Scaling up – is this possible outside London?

For smaller or regionally-based institutions wanting to develop this area of giving, many aspects of organisational ambition must coalesce – strong reputation, visibility, time, networks, infrastructure, transparency and effective governance.

That’s not to say that large-scale philanthropic investment in smaller institutions can’t be achieved, but it requires organisational development over years and those without the infrastructure will need support to develop the framework, thinking and strategies to achieve similar success.

The power of a campaign

Gateshead’s Baltic Centre for Contemporary Art is an example of hard work bearing fruit in this area, with its campaign for a £10m Endowment Fund kickstarted by a major donation from the musician Sting.

A single large donation can act as a catalyst for further contributions from other individuals or corporations. As Baltic director Sarah Munro says: “Baltic’s Endowment is a long-term goal to strengthen our overall long-term financial position and allows us to fulfil our mission.We started seriously planning 18 months ago with the support of our board of trustees, who have been very engaged in developing this model.

“Sting’s major donation was a significant kickstart to this initiative, and we are hugely grateful for his endorsement and recognition of our endeavour to build resilience through the Endowment. Our aim is to raise £10 million, and from that capital we will earn an annual investment income of £300-400k which will allow us to continue with free entry and maintain the amazing work we do with families and young people… We hope it will inspire other arts organisations who have not yet considered Endowments.”

Developing long-standing relationships

Large gifts can carry major expectations in areas such as transformational impact and public benefit, visibility, naming and long-term stability, as well as donors seeking a forgiving and supportive tax and legal environment. Gifts of this magnitude are high risk, and donors will often perceive smaller organisations as carrying higher risks in terms of governance, capacity and visibility, so building relationships is crucial to success.  

For small-scale organisations, these donations may be generated through local interest. For example, Elizabeth Arnold and Clive and Virginia Lloyd are deeply involved as donors across the classical music sphere with a focus on West Yorkshire. Some relationships can be based on the individual kudos or connections of a key member of the senior team, demonstrating the importance of cultivating professional networks at any career stage.  

Sir Vernon Ellis has also held significant governance roles in the sector as well as making major financial contributions of a variety of scales and formats including loans. Of his giving, he states: “It is about thinking of grants more in terms of investing in the future – such as supporting the ENO and Classical Opera Company young singers’ schemes… The reward comes from seeing the singers’ amazing development at first hand.

“But I can get equal pleasure from making interest-free loans to support, for example, marketing initiatives or longer-term investments in new income-producing activities. In this way, my limited resources get stretched further, and hopefully I can also promote longer-term sustainability in these organisations.”

Tapping into themes

Similarly, smaller-scale organisations have been able to access higher levels of philanthropic giving from individuals with a particular passion for an artform. Charles Glanville, former managing director of Oberon Books is one such patron who supports a wide array of dance organisations including Alexander Whitley Dance Company, the Royal Academy of Dance, the Royal Ballet and Opera House and the English National Ballet.

“I support the arts. I have capacity to make decent donations, but nothing major. At my level of giving, I can make a difference to a small arts organisation. The big boys? My donation doesn’t move the needle. Best thing is to find great quality, smaller organisations where I can really contribute.”

This style of giving may be more accessible to smaller organisation. Rather than chasing the dream of a large single donation from someone who wants to make a major impact, you are joining a passionate supporter’s own investment portfolio built on a passion.