As I run training in innovation and entrepreneurship across England in my role as Programme Director of the Arts Council England-funded Arts Fundraising and Philanthropy programme, I am struck by just how resilient arts organisations are, and how many ideas and new approaches there are in arts fundraising.
With a constantly changing agenda in funding, we do need to see some stability to let some of this more entrepreneurial activity settle in and for it to start to become a reality in our arts funding ecology.
Of course, when we think of innovation, invariably our attention turns to digital and some of the newer tools that might lead to alternative income streams, such as online giving, crowdfunding and the like. However, the reality is that whilst there is potential for arts organisations to increase revenue in a number of these areas, it is unlikely to lead to the six and seven figure sums that are needed to replace lost Arts Council England or local authority funding.
Instead, where I see much of the innovation coming from in fundraising, lies in organisations that are prioritising four key areas:
- Place
The organisations that are forging ahead are asking and answering the key questions that are making them indispensable – what does the area really need, where are the gaps, what do schools need? It’s the organisations that genuinely know their region and that are responding to specific gaps that are securing high-level funding. This might seem obvious but sadly I see a lot of organisations paying lip service to real consultation in their area, rather than taking the time to go into depth. In these times of limited funding, we absolutely must see arts organisations responding to genuine need. - Partnership
The word partnership has become something of a cliché. However, those organisations that really embrace and understand true partnership working are making great strides in fundraising, and in turn are helping secure new investment for whole regions. Funders are supportive of area activity, especially when it is joined up in response to need. - Positioning
The savvy organisation that knows its value will protect its unique position and will tell funders the same story over and over again. These are the organisations that become the ‘go to’ for expertise in a particular area – be it music, theatre or the protection of libraries. All too often we see arts organisations espousing complicated messages that are not unique. Simplicity and distinctiveness are always at the heart of innovation in fundraising. - People
Fundraising is a team effort and from Board to Box Office the innovating fundraising organisation will be making income generation a priority for everybody. Fundraising needs to be intrinsic to an organisation’s culture, and the use of digital used well is also about people. There is real value in data, networks and knowledge that can be monetised for the organisations that invest in such positioning, but this activity cannot sit in silos – it must be embraced organisation-wide.
The need for new business models
With this context in mind, there are many arts organisations that know that their business model might benefit from a radical overhaul, but my sense is that there is a fear that the funders won’t support such change or transition. What emerges is a paralysis, with the board, executives and key funders all ending up protecting the status quo.
So at least some of the work of the next period might be encouraging funders to support a ‘no-risk’ call to organisations wanting to explore radical new business models, where the best advice, funding and support (including from outside the establishment) could be given to those needing to change.
Funding could be ring-fenced for establishing new ideas and taking a fresh look at place, partnerships, positioning and people to really make sure that our arts organisations are fit for the future.
If we could achieve these developments, I can’t help but think that such transparent innovation from our main arts funders might lead to quite a different picture of grant funding and business models for arts organisations in the coming years…
