RFOs re-imagined

The quality of arts organisations, and their relevance to the overall portfolios of their respective arts councils, are the common criteria in new documents on core funding just released by Arts Council England (ACE) and the Arts Council of Wales (ACW). ACE has published its criteria for regular funding following a ‘light touch’ consultation exercise earlier this year. Although ACE has not previously published such criteria, a spokesperson for the organisation told AP that they do not represent significant change. “Rather, we are trying to explain more clearly and more openly the framework for decision-making that we use,” she said. The criteria apply not only to organisations which produce, perform and exhibit art, but to service, umbrella and networking organisations. The main points of assessment are excellence, reach, engagement, financial sustainability and governance. ACE has pointed out that it has “recognised more explicitly that it is more difficult for organisations which do not already receive regular funding to meet the financial sustainability criteria, so we said more clearly that that those organisations are judged on their potential to meet it”. However, it does not plan to issue any more detailed guidance on how organisations might address this.

The issues of relevance to ACE’s portfolio are identified as reflecting “the diversity of contemporary England”, supporting a range of artistic practice and roles, a mix of sizes and types of organisations including both traditional and innovative work, and geographical spread “to support an infrastructure of regularly funded organisations across the whole of England”. Obligations of regularly funded organisations (RFOs) will continue to include providing monitoring information, producing a race equality or diversity action plan, and complying with English and EU procurement law.
As previously, there will be no application process, but organisations may submit an expression of interest in becoming an RFO. Surprisingly, in the wake of the funding review crisis of 2008, the document does not cover disinvestment, but ACE told AP, “we are planning to look again at our disinvestment procedure in time for our next round of investment decisions, but at the moment it remains unchanged”.
Simultaneously, ACW has issued a consultation document entitled ‘Policy for Managing the Arts Council of Wales’ Portfolio of Revenue Funded Organisations’. It identifies three factors affecting investment decisions: policy, based on ACW’s current priorities; performance, based its recent quality framework document ‘Strive to Excel’ (AP202); and portfolio development. This last category includes “an eclectic and interesting range of artforms”, the size and type of organisations, strategic potential, and diversity and geographical spread, but also includes evidence of partnership – largely based on attracting funding from other stakeholders – and “professional opportunities for employment in the arts”. ACW’s document also includes information on disinvestment, and its various triggers, which range from “concerns about an RFO’s standard of performance in relation to… artistic activity, governance and administration, or finance and budgeting” to “fraud or serious misconduct”. RFOs would be given 12 months’ notice of disinvestment. The closing date for responses to the consultation is 21 January 2010.