28 February 2012back

New Figures for Private Investment in Culture reveal contrasting fortunes for the arts world

Arts & Business figures show slight overall growth in private sector investment in culture to £686m

  • Business falls for the fourth year in a row to £134.2m
  • Growth as Individual Giving climbs to £382.2m
  • Trusts and Foundations increase to £170.3m
  • New figures almost hit record high of 2007/08
  • Additional falls in business support offset by growth in Trust and Foundations
  • North’s share rises over the last three years whilst the South’s (excluding London) declined
  • London captures 81% of all individual giving
  • Heritage and museums bring in just over half of all private sector support

Arts & Business’s new figures reveal that in 2010/11, private investment in culture stood at £686 million, a 4% increase from the previous year. Since Arts & Business first started capturing this data in 1976, private investment in the arts has been following a general upward trend, which has been interrupted in recent years with decreases from various sources of investment.

  • The overall private investment increase of 4% (not allowing for inflation) includes a 10% increase of trusts and foundations funding, a 6% increase of individual philanthropy, and a 7% decrease of business investment.
  • The rise in Individual Philanthropy follows a decline in the previous two years, and is in line with its relatively fast-paced growth since 2001. The 6% increase brings the levels of arts philanthropy to £382.2 million, which is higher than at any point in the past.
  • Business investment has fallen 7% to £134.2m. Although businesses are still committed to working with the arts, they are not hardwired to do so. Corporate money is a discretionary spend; particularly in hard times. As a result, business investment in 2010/11 is now lower than it was in 2004/05.
  • Funding from trusts and foundations increased in 10/11 by 10%, and is higher than business investment for the second year in a row, thereby helping the overall moderate private investment increase. Funding from this source now accounts for 25% of the total private investment received in the sector and now stands at £170.2 million.

Arts & Business

Philip Spedding is available for interview, please contact: Jonathan Tuchner, 07970 224471 jonathan.tuchner@artsandbusiness.org.uk

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Arts & Business says …

In the press:

Listen to Jeremy Hunt and Will Gompertz discuss our new analysis of private investment in culture

The Guardian: Corporate arts philanthropy drops 7% in a year

FT: Year of corporate giving’ to arts fails to deliver

BBC: Companies reduce arts donations

Reuters: Companies give less, individuals more to UK arts

Manchester Evening News: Arts' sector business investment falls by five per cent

Museums Association: Businessess Abandon Culture

Hollis Sponsorship Bulletin: Arts Sponsorship Investment Falls For Fourth Year Running

Quotes:

"What is clear from these figures is that we need to increase awareness across the wider business community, and to show how our support of the arts can bring many benefits to both communities and to our own organisations.

"The new Arts & Business Leadership Team has been established to promote support from businesses in order to build stronger economies, and to demonstrate the value that a healthy arts sector can bring to us all. Bank of America Merrill Lynch‟s long-standing involvement with this sector has shown us that there is a strong business case for supporting creative individuals and innovative institutions. The arts are not an optional extra – they provide insight, creativity and opportunities to build self-esteem, all of which are necessary to make our communities healthier and more vibrant."
Jonathan Moulds, Bank of America Merrill Lynch’s Europe president and Chair of the new Arts & Business Leadership Campaign

"This confounds the critics who said it was a waste of time trying to boost philanthropic giving when times are tough. It is also a real tribute to the determination of the cultural sector to boost its fundraising and strengthen the financial resilience of arts organisations. We now just need to keep going - particularly exploring the opportunity of legacy giving for which a new tax break comes into force this April."
Jeremy Hunt,Secretary of State for Culture, Olympics, Media and Sport

"Arts & Business has provided us with yet another thought-provoking report that demonstrates their valuable work and contribution to the sector. Their announcement is welcome news for the arts and I hope that this indicates that arts organisations are growing their fundraising bases.

"However, Jeremy Hunt and Ed Vaizey cannot be complacent. We are 22 months into a five-year programme of government austerity. The government promised that cuts in public funding for the arts would be replaced by philanthropists‟ generous donations, across the country. We can see that this simply hasn‟t happened. Whilst private giving has increased by £28.5million in 2011, the public funding to Arts Council England was cut by £71million. This is deeply worrying for the long-term sustainability of the arts sector.

"I am particularly concerned about the decreases in private funding for Community Arts Projects and Theatres, as well as the 7% (almost £10million) fall in contributions from businesses.

"I am producing a report entitled „Arts in the Regions,‟ because I think it is imperative that we ensure all arts organisations have the business acumen they need. By investing time in the procurement of the relationship between the arts and business sectors, we can ensure that the arts survive the CSR-period, and that they continue to grow and expand their footprint in communities across all English regions.”
Dan Jarvis MP, Shadow Culture Minister

"There are distinct variations across the country, but overall the arts world has continued to respond to the cold economic climate in a positive and successful manner. The downward trend on business support for the arts remains our prime concern. However, we are beginning to see some in the arts discovering other productive ways to work alongside business, and our role remains to develop, sustain and celebrate these new ideas and models.
It remains to be seen whether private investment is set to become the dominant funding force of UK culture. What we are seeing is through the adoption of new fundraising and digital channels, arts bodies and individual artists across the UK are capitalising on the unquestionable opportunities that exist for the arts in communities, in the pursuit of creativity and in the delivery of enterprising sponsorships."
Philip Spedding, Campaign Director, Arts & Business