The circumstances under which Arts Council England (ACE) will “make a financial intervention” in a National Portfolio Organisation during the life of its funding agreement have been set out in a new set of guidelines. In future, organisations facing immediate and serious financial risk will only be bailed out of a crisis if ACE considers them to be irreplaceable and is convinced that no other organisation is able to make a similar contribution to its portfolio, either geographically, in terms of artistic development or services to the sector. The organisations concerned will also have to be prepared to respond to Arts Council requirements for changes to their organisations, such as the approval of a new business plan which demonstrates increasing earned income or a review of the governance and leadership team. ACE will only step in when non-financial options have been exhausted, and organisations that already generate more than 90% of their turnover from other sources will not be considered.
