Cost savings, renewed appeals to institutional funders and delays in filling vacant posts are among the most likely responses to a decline in revenue caused by the current financial squeeze, according to a new report from Arts Quarter (AQ). ‘Impacts of the Recession on the UK Cultural and Not-for-Profit Sectors’ is based on an online survey of 306 cultural organisations during January and February this year, many of which “report or predict zero or negative growth”. John Nicholls, the author of the report, identifies a clear sense of the need to prepare for difficult times ahead, but also points to the need to “look for ways to be creative in generating revenue of all kinds from all possible sources” and a number of “stories of innovation”. Organisations are exploring new fundraising initiatives, diversifying their income-generation streams and reducing reliance on corporate support. There is also a strong intention among cultural organisations to shield their artistic output from the adverse impact of reduced funding.
Headline findings include: that the cultural sector is suffering marginally more than the charity sector as a whole from a decline in revenue; that the cultural sector is experiencing a higher rate of decline in individual donations than the wider charitable sector; and that organisations outside London are seeing a greater reduction in corporate sponsorship than those inside London. However, London-based organisations appear to be experiencing a greater decline in support from Trusts for both project support and core funding. It has also been noted that ticket sales are holding up or even increasing, but bar and restaurant takings are down, indicating that people are maintaining their attendance levels but cutting back on peripheral spending. One respondent remarked that “our visitor footfall is remaining relatively stable but our spend per head is decreasing”. AQ was also able to compare theatre with the rest of the cultural sector, showing that theatre is experiencing a greater decline in corporate, trust and individual support. Eighty per cent of theatre respondents and 60% of other cultural respondents predicted that their fundraising revenues are likely to remain static or will decline in the financial year 2009/10. Theatres also report a significant decline in income from hire of spaces, but “a good level of stability” in education and professional learning fees.