Written evidence submitted by Cause4 (arts
1.1 On recent evidence, we are concerned
that there is a danger that the arts could be disproportionally
affected by cuts in public funding. Additionally, we do not want
to see arts and heritage suffer greater cuts than other DCMS responsibilities.
1.2 We are optimistic that the current economic
climate offers opportunities as well as threats, particularly
in developing more sustainable funding models, innovative partnerships
and a greater entrepreneurial approach. If these are implemented
successfully, they could open up additional sources of non-public
1.3 However, it is our experience that few
arts organisations have the time, resources and expertise to really
exercise this sort of innovation. Therefore, investment in information
sharing and capacity-building to this end would be valuable.
1.4 Corporate supporters and individual
philanthropists can and do play a long-term role in funding the
arts alongside government. However, it is counterproductive to
ask or expect philanthropists to fill the gap in public investment.
Indeed, this approach lacks a fundamental understanding of the
relationship between donor and charity. It is also important that
the process of encouraging greater philanthropy is led by philanthropists
1.5 We believe the appropriate role for
Government in supporting a culture of giving is in making giving
easier, making it more tax efficient for individuals and companies,
and recognising those that make a contribution. Match funding
of private support needs much more exploring within Government.
We feel it provides an incentive to raise, an incentive to give
and a means by which Government can get very best value.
1.6 The contributions of existing donors
must be made to go further through more effective donor relations.
We believe that the most sustainable investment from Government
would be in training fundraisers. The sector suffers from a lack
of talented, well-trained staff able to develop strategic programmes
capable of attracting significant funds.
1.7 It is also vital that lower levels of
giving are maximised. It is in allowing everyone to give, and
in encouraging everyone to give, that a stronger philanthropic
culture can be created. There should be a renewed focus on life-long
giving, career-long giving and developing giving among the young.
1.8 Social media has the potential to revolutionise
giving at lower levels. Currently, the majority of charities and
social enterprises are not maximising the impact of social media,
for both profile raising and fundraising.
1.9 We believe that the UK's culture of
philanthropy would also benefit from promoting the National Lottery
much more as a vehicle for charitable giving.
2.1 On recent evidence, we are concerned
that there is a danger that the arts could be disproportionally
affected by cuts in public funding
and a desire to reduce the number of cultural sector quangos.
Programmes aimed at increasing engagement in culture have already
2.2 It appears that the sector is still
seen as an easy target by Government overall, despite the strength
of support we have experienced from civil servants at the Department
for Culture, Media and Sport (DCMS). The cultural sector has traditionally
struggled to make its case in a way that is appreciated by the
Treasury and those that ultimately hold the purse strings.
2.3 This is in spite of the significant
contribution the arts and heritage make to the economy through
the creative industries and particularly tourism, not to mention
their intrinsic value to individuals and communities. The Prime
Minister recently cited the tourism sector as "fundamental
to the rebuilding and rebalancing of our economy" and "one
of the best and fastest ways" of generating jobs and income,
using the economic success of Liverpool as European Capital of
Culture as a direct example of this.
2.4 According to Arts Council England figures,
every £1 invested in culture produces £2; two thirds
of the adult population in the UK enjoy the arts, visit historic
sites and go to museums and galleries. Of the top 10 UK visitor
attractions, eight are national museums. The cultural sector is
making a contribution to the economic recovery through offering
work and training.
2.5 At a local level, the arts are particularly
vulnerable. We are aware of the difficulties already facing libraries,
through our work with The Reading Agency, and our fear is that
without a statutory responsibility, local councils will be left
with little choice but to scale back their support for arts too.
2.6 It is our view that the arts and heritage
sectors should bear their share of the pain in the current economic
climate as a matter of "fairness". However, given the
levels of investment in the sector, and indeed the DCMS as whole,
this should not be proposed as a way to fill the budget deficit.
The DCMS overall has one of the smallest budgets in Whitehall.
2.7 Additionally, we do not want to see
arts and heritage suffer greater cuts than other DCMS responsibilities,
primarily sport. Both are equally importantparticularly
with London 2012 now firmly on the horizon.
3. THE IMPACT
3.1 Without doubt there will be hugely visible
impacts of funding cuts for both arts organisations and audiences,
based on current proposals of 25 to 40%. The range and volume
of arts will be reduced; and we may see less risky and cutting-edge
work on offer as organisations look to maximise audiences and
box office takings. Education and participation programmes are
likely to be scaled back, and smaller, community-based organisations
will suffer from local authority cuts. We fully expect to see
organisations closing, greater staff redundancies and more individual
artists struggling for commissions.
3.2 During this difficult time, the arts sector
needs to prioritise what it can achieve, and be clear with the
Government on what role it will play in the current climate. We
know that the arts can provide enjoyment, inspiration, education
and economic valuebut whether the sector can continue to
deliver on all of these with less funding remains to be seen.
3.3 Perhaps unusually, we are optimistic
that there are also opportunities presented in the current economic
climate. Organisations can and should be looking to be more sustainable
in terms of their funding mix. During this golden period for the
arts, and the boom in public investment, many organisations have
become over reliant on the State. This has resulted in a lack
of innovation, creativity and resourcefulness in the operation
and management of some arts organisations.
3.4 Therefore, we would expect arts and
heritage organisations to take a more entrepreneurial approach
to diversify funding streams, and increase the creativity in developing
projects. We believe that these activities, if implemented successfully,
are likely to attract additional interest from non-public funders.
However, it is our experience that few arts organisations have
the time, resources and expertise to really exercise this sort
of innovation. Investment in information sharing and capacity-building
to this end would be valuable.
Case study: Reading Agency
3.5 On 1 July 2010 Culture Minister Ed Vaizey
MP outlined the Conservative vision for libraries, which he believes
have a "home at the heart of the `big society'". The
Big Society is particularly relevant to libraries which have the
needs of communities and library users at their heart. However,
in this age of austerity, it is also essential that creative activities
and learning across the sector are given room to thrive and flourish.
3.6 Cause4 knows from first-hand
experience of working with The Reading Agency how this can happen.
The Reading Agency has developed large-scale community reading
programmes in partnership with library services. Its Summer
Reading Challenge engages 725,000 children in reading and
creative activities across the six week summer holiday, providing
volunteering opportunities and collaboration with local schools.
3.7 Undoubtedly, libraries offer a lifeline
between the information rich and the information poor. They can
support people to get involved in local life in all sorts of ways:
volunteers taking services to the housebound; or residents running
reading groups. It is this sort of new partnership operating at
a national and local level, and linking the statutory and arts
sectors, that is essential to a new type of thinking and fundraising
across the sector.
4.1 While mergers may be a step too far
for many arts organisations, partnerships are essential. The potential
of mergers can quickly dissolve into parochialism, concerns about
identity and branding, and difficulties about managing assets
4.2 There are, of course, gains to be made
in sharing backroom functions and reducing wastage. But we believe
the greatest opportunity lies in developing innovative projects
in partnership that will be attractive to donors, both individual
and corporate. This is particularly pertinent where there are
a number of smaller organisations undertaking comparable activities,
which is relatively common in the arts. Partnerships allow all
parties to achieve their charitable objectives in an interesting
and cost-effective way.
4.3 There is huge potential for new and
exciting collaborations to be developed as a result of the restrained
funding environment. This could be between arts organisations,
and between arts organisations and funders. Joint working between
charities on the delivery of projects would appeal to donors and
cut down on duplication and waste. The Office for Civil Society's
work to reduce the burden of bureaucracy faced by charities is
to be welcomed in this context.
Case study: London Chamber Orchestra & Barnado's
4.4 The London Chamber Orchestra and Barnardo's
are working in partnership to deliver Music Junction. This is
the first collaboration of its kind in the UK between a leading
orchestra and a children's charity looking specifically at joined
up delivery. Together they are developing a project which focuses
on bringing music making activities to vulnerable young people.
4.5 The pioneering project provides high-quality
music-making activities and education, a programme of digital
music technology training and a mentoring and befriending scheme,
each catered to local needs and circumstances. Pupils from Academy
schools, Barnardo's schools and centres, and Independent schools
will take part in shared activity, thereby directly breaking down
divisions and prejudices.
5.1 Corporate supporters and individual
philanthropists can and do play a long-term role in funding the
arts alongside government funding. Philanthropy for us encompasses
the spectrum of charitable giving by business, trusts and foundations,
by high net worth individuals as well as everyday giving by the
average person. Increasing a culture of philanthropy requires
an increase in both the number of people giving charitably, and
the level of donations.
5.2 There is a danger in this current climate
of existing philanthropic relationships shifting as the government
talks of philanthropists stepping up to fill the gap left in public
funding. We believe that this is counterproductive and, in light
of the deeply personal nature of the relationship between organisation
and philanthropist, such an expectation seems naïve. This
approach shows a lack of fundamental understanding of the relationship
between donor and charity.
5.3 It is important that the process of
encouraging greater philanthropy is led by philanthropists themselves.
The success of The Giving Pledge in the States arises because
it is led entirely by philanthropists, those who have themselves
"put their money where their mouth is" and who stand
as an exemplar.
Attempts by Government to lead on this agenda are likely to be
unproductive. At a time when the Government is reducing funding,
the culture of philanthropy may benefit from leaving it to those
that give to set the pace.
Case study: Salisbury International Arts Festival
5.4 Much is made of the difficulties that
regional arts organisations have in attracting philanthropy. However,
with the right energy and momentum, the potential to engage local
philanthropy and business at a high level has just as many possibilities.
5.5 The Salisbury International Arts Festival
is an example of regional tenacity and innovation. In looking
to identify ways to maintain adequate levels of corporate sponsorship,
the Festival team has looked to develop a stream of corporate
funding that has been matched by an eminent local philanthropist
to protect the amount of traditional headline sponsorship. This
will secure the Festival's diverse artistic programme throughout
2011 and enable the Festival a platform to engage with other local
philanthropists providing flexible new models for philanthropic
5.6 We believe that the appropriate role
for Government in supporting a culture of giving is in making
giving easier, making it more tax efficient (for both individuals
and companies), and recognising those that make a contribution.
We welcome the moves by Government to look at reforming Gift Aid
to increase the levels of take up; other means such as payroll
giving and lifetime legacies would benefit from greater promotion.
We recommend that Gift Aid, as well as other channels, are kept
as simple as possible, and that any reforms are accompanied by
an awareness campaign backed by the Government. Whatever the methodtax
breaks, matched giving, charity bondsradical change is
needed which will outlast the term of any Government.
5.7 We believe that pragmatism should be
at the heart of the decision making process of which organisations
and projects should be funded by the state. The key consideration
is what programmes of value would absolutely not otherwise take
placeand would therefore merit support from the Treasury.
This is, of course, not necessarily an easy question to answer
and involves a large element of subjectivity.
5.8 Match funding initiatives would open
up real possibilities for philanthropy. Government match funding
of private support, potentially up to a 50/50 split, offers an
excellent compromise solution, offering the "best bang for
the private buck". It provides an incentive to raise, an
incentive to give and a means by which Government can get very
5.9 The contributions of existing donors
must also be made to go further through more effective donor relations.
This requires increased learning within the arts sector and adequate
training for emerging fundraisers. In this funding environment,
innovative fundraising is an absolute necessity. It requires a
breadth of business understanding as well as enterprise; skills
which need developing in the arts and heritage sectors. Additionally,
fundraising would benefit from some promotion as a respectable
and professional career choice in order to attract new talent
into the sector.
5.10 We believe that the most sustainable
investment from Government would be in training fundraisers. Encouraging
improved fundraising practices should also be integrated into
funding agreements. Currently a large proportion of Arts Council
funding is spent on the annual programme of arts organisations.
A strand of this might be more effectively spent on fundraising
staff and resources (such as internal IT systems) to support the
organisation in the long-term and help it stand on its own two
Case study: Cause4 training programme
5.11 Cause4 is developing an innovative
training programme which aims to attract new talent into development
and fundraising and to equip trainees with the skills and experience
needed for success. Development and fundraising must go hand in
handa principle to which Cause4 is uncompromisingly
wedded and one that should be deeply ingrained into the thinking
of charities and the psyche of fundraisers.
5.12 Countless trustees and executives of
charities tell us that they cannot find people of the right calibre
to lead their fundraisingpeople with good instincts and
natural judgment, strong communicators capable of building good
relationships with donors; strategic thinkers equipped with a
broad and practical understanding of the full range of fundraising
5.13 Most of us who have found our ways
into charity development and fundraising, have done so by accident
rather than design. While there are development and fundraising
qualifications, and also specific strands within some Masters
programmes, these focus too heavily on the theory and insufficiently
upon the practice.
5.14 We believe that there is no substitute
for hands-on experience that will enable a new energetic and dynamic
group of fundraisers to learn how to think strategically, how
to develop projects and programmes which will deliver social outcomes,
how to build relationships and develop good instincts by working
alongside those with a few yearsand a bit of successunder
5.15 The Government's recommendation of
a 1% income social norm is helpful, but we need to create a culture
of giving in which everyone is able to participate at levels appropriate
to them. This may be more than 1% in many cases.
5.16 It is also vital that lower levels
of giving are maximised. Philanthropy should not be the preserve
of the wealthy. We can only give according to our means but we
will only give if somehow the instinct to give has been developed.
5.17 It is in allowing everyone to give,
and in encouraging everyone to give, that a stronger philanthropic
culture can be created. All philanthropic journeys, we assume,
begin with a small initial step. If the instinct to give according
to means is developed, we will see extensive small-scale giving
complemented by an increase in those substantial gifts that really
make things happen.
5.18 Social media has the potential to revolutionise
giving of this sort. The pace of technological progress, especially
with the spread of smart phones and the development of location-based
services, means that fundraising possibilities are endless. Currently,
the majority of charities and social enterprises use the tools
of social media, such as Twitter and Facebook as a bolt-on, rather
than integrating and optimising them with existing efforts and
5.19 Increasingly, Cause4 has been
asked to help charities and social enterprises maximise social
media strategies, to think about an organisation's story and to
support them to enhance fundraising. Delivery of social media
strategies are perfect volunteer activity but the framework needs
to be robust and the outcomes strong with a clear means of delivery.
5.20 The Government might want to look at
new initiatives for young people to encourage life-long giving,
possibly as part of proposals for the national citizen service.
There is certainly a role for schools, colleges and universities.
Career-long giving is also important, and payroll giving could
have a greater role to play. Organisations should also be looking
to develop closer relationships with younger people on the ladder
to career success. The Government should be recognising the contribution
of donors, and those in earlier stages of their giving careers,
through the honours system and in other ways.
6. NATIONAL LOTTERY
6.1 We welcome the additional funds directed
to arts and heritage from the Lottery, while at the same time
recognising the value of the Big Lottery Fund as a source of funding
to many community projects.
6.2 We believe that the UK's culture of
philanthropy could benefit from an examination of the role that
the Lottery plays in the ecology of charitable giving. For example,
how far are those who purchase tickets motivated by charity as
opposed to personal gain; are philanthropic motivations considered
when developing the criteria for distributing funds; do they help
the right people and organisations; and are there ways to see
income generated and spent in the same localities?
6.3 We would also like consideration to
be given to the promotion of the Lottery, with it positioned more
centrally in the sphere of charitable giving. Run well, and promoted
much more obviously as a vehicle for supporting good causes, it
could achieve even more for good causes.
7. ABOUT CAUSE4
7.1 Cause4 was set up by Nick Gandon
and Michelle Wright in May 2009 to support charities and social
enterprises in development and fundraising across the arts, community,
sport and education sectors. Michelle was the London Symphony
Orchestra's Development Director working across a diverse international
fundraising portfolio, whilst Nick was Director of the Cricket
Foundation, developing and overseeing the highly successful Chance
to Shine programme. The company currently works with numerous
organisations and philanthropists in the arts sector.
130 DCMS press release, 24 May 2010, announcing an
additional reduction in Arts Council England's budget of £5
million http://www.dcms.gov.uk/news/news_stories/7081.aspx Back
DCMS press release, 26 July 2010, announcing abolition of the
Film Council and MLA http://www.dcms.gov.uk/news/news_stories/7280.aspx Back
DCMS press release, 17 June 2010, announcing the cancellation
of funding for A Night Less Ordinary and Find Your Talent, http://www.dcms.gov.uk/news/news_stories/7193.aspxother Back
Prime Minister's speech on tourism, 12 August 2010, http://www.number10.gov.uk/news/speeches-and-transcripts/2010/08/pms-speech-on-tourism-54479 Back
Arts Council England press release, 15 July 2010 http://www.artscouncil.org.uk/news/you-can-cut-us-dont-kill-us-say-uks-cultural-leade/ Back
The Giving Pledge http://givingpledge.org/#enter Back