Half of arts organisations in London see drop in individual giving

Almost half of arts organisations have seen a fall in individual giving, between April and July, according to ‘Market trends 2009’ released by Arts & Business in September. A similar number have seen a decrease in grant-making by trusts and foundations.

But 70% of London-based arts organisations have experienced a decrease in business support, which includes sponsorship and CSR, during the same period. More businesses (27%) now see sponsorship as a priority than they did in November 2008, when the figure stood at 24%.  However, the percentage that see CSR as a priority has dropped from 24% to 22%.

The report reveals that whereas 20% of arts organisations have experienced a decrease in business investment of more than half, only 7% have seen individual giving drop by the same amount.

It says, “Individuals’ connection to the arts is more deeply rooted than businesses’, as it is grounded in a personal sense of pride and belonging.”

Theresa Lloyd, founding director of Philanthropy UK and author of Why Rich People Give and Cultural Giving, agrees, adding, “Local pride is a powerful motivator in encouraging support of the arts.”

Lloyd adds that there is “insufficient emphasis” on what donors really care about in their relationships with arts and cultural organisations. “Administrative simplification is needed across all sectors as identified in Why Rich People Give, including of Gift Aid.  While the use of technology such as online giving may be growing, it is from a very low base, especially for those in direct long-term relationships with an organisation.  In tough times it would be far better to invest in really effective research and database management systems, and sufficient staff to manage the personal contact with the organisation, the artists (in the widest sense) and other donors that reinforces the sense of 'belonging' that the report identifies.”    

Colin Tweedy, chief executive of Arts & Business, said, “We must redouble our collective efforts to ensure that the private sector, which will recover from the recession long before the public sector, maintains and increases its contribution to the arts.”

On average, the arts world expects the recession to continue impacting on their fundraising efforts for another 22 months (up until 2011), the report says. Increasing fundraising activities is the most popular response to the recession from arts organisations who took part in the survey.

For a full copy of the report visit the Arts & Business website.