Hollis Sponsorship Bulletin

The 33rd Arts & Business Awards shortlist demonstrates, according to A&B, that despite tricky times businesses are still investing in culture to boost their brand and contribute to the community. These awards celebrate the most inspiring partnerships between culture and commerce that bring brand benefit, support for the arts and more diverse culture to the public. Director of Arts & Business, Philip Spedding said: “We are very encouraged that, despite the economic difficulties, the variety and ingenuity of this year’s shortlist is as dynamic as ever. It underlines the

valuable role that business can play in making the arts sustainable and the very practical role that culture can play in helping businesses to achieve their objectives.” To view the shortlist, click here

Business sponsorship of the arts has fallen for the fourth year in a row to £134.2 million according to just-released figures from Arts & Business however the figures show a
slight overall growth in private sector investment in culture to £686 million thanks to individual giving which has grown to £382.2m and income from Trusts and Foundations which has increased to £170.3m
Interestingly, the north of England’s share of investment in the arts has risen over the last three years whilst the South’s (excluding London) has declined. Unsurprisingly, London captures 81% of all individual giving
while heritage and museums bring in just over half of all private sector support.
Jonathan Moulds, Bank of America Merrill Lynch’s Europe president and Chair of the new Arts & Business Leadership Campaign said: “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.”
Secretary of State for Culture, Olympics, Media and Sport Jeremy Hunt said: “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.”
Dan Jarvis MP, Shadow Culture Minister, added: “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 £10 million) 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.”
Philip Spedding, Campaign Director at Arts & Business, comments: “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.”

Sponsorship of the arts by businesses was down for the third year in a row in 2010, by 5.3%, to its lowest level since 2003/2004, and 16.5% below its peak in 2007, according to a report just published by Research and Markets. It is very clear that, in the wake of the Government’s Comprehensive Spending Review, challenging times lie ahead for the arts sector as the budget for the Department for Culture, Media and Sport (DCMS) reduces by 24% to 1.1bn by 2015. Grants to national museums will be cut by 15% by 2015, and Arts Council England’s budget will be reduced by 29.6% over the coming four years.
According to Arts & Business, national art institutions in London remain the largest recipient of arts sponsorship, accounting for 68.2% of all private investment in the arts in 2010. The combined investment in Scotland, Wales and Northern Ireland, by contrast, accounted for just 10.3% of private investment nationwide. Whereas heritage organisations, museums and visual arts and galleries, the three largest recipient categories of private sponsorship nationwide, have seen their donations increase, private investment in art services, opera, dance and film and video have all steadily declined over the last three years.
In contrast to the arts, sponsorship in broadcast media has been relatively resilient, with its value remaining above pre-recession levels. Total sponsorship spending on broadcast programmes (both television and radio) in 2010 is estimated to have been worth £290 million. Live sports, popular soap operas and reality shows have no apparent difficulty in attracting interest from sponsors. Sponsorship for television programmes was robust, increasing by 10.7% in 2009, and a further 17.5% in 2010. It is expected that media sponsorship will continue to grow substantially over the next two years, boosted by the approach of the 2012 London Olympics.
The authors of the reportexpects total sponsorship spending for arts and broadcast programmes to increase by around 5.6% in 2011, driven largely by broadcast media sponsorship, whereas sponsorship for the arts is expected to remain subdued in 2011. By 2015, the total UK market for arts and media sponsorship is expected to be worth close to 506m.
For more information on the report, please visit http://www.researchandmarkets.com/research/153fd1/arts_media_spons

Arts & Business’s survey figures reveal that in 2009/10, private investment in culture in Scotland stood at £41.7 million, a six percent increase in real terms 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. Although 2008/9 saw an overall decrease, the combined sources of private giving have again shown an increase.
The overall private investment increase is due to a significant boost from Trusts and Foundations, that is the result, in part, from support for major capital projects.
Individual Philanthropy decreased for the second year in a row, continuing the interruption of its growth since 2001. In recognition of this negative shift, Arts & Business is working with the Centre for Charitable Giving and Philanthropy to attempt to redress the fall in arts philanthropy.
Business investment in Scotland increased in line with inflation in contrast to an average fall across the UK of 11%. A&B believes that this was in part to the Scottish Government’s continued funding to Arts & Business Scotland for the New Arts Sponsorship grants scheme that encourages new business sponsorship.
Trusts and foundations – Scottish cultural organisations raised an additional 48% in funding from trusts and foundations compared with the previous year. This is far in excess of the UK average increase of 11%. This success built on the previous year’s significant increase of 20%. In both years large grants for major new capital projects was a major element.
Commenting on the results, Barclay Price, Director of Arts & Business Scotland, said: “These positive figures indicate the continuing attraction of the Scottish cultural offer and the excellent work being done by fundraising staff within cultural organisations to make a persuasive case for private investment in the face of the recession.
“As the recession is far from over in Scotland, it is crucial that we work with the cultural sector to nourish all forms of private sector investment, and are therefore delighted that in the current year the Scottish Government have again given us funds to incentivise new business sponsorship.
“The further decrease in individual philanthropy is of concern, and we hope that our partnership with the Centre for Charitable Giving and Philanthropy will provide intelligence and ideas that can assist cultural organisations to raise a greater share of their funding from individuals. The recent success of the Big Arts Give in which eight Scottish arts organisations raised over £150,000 from individual donors, indicates the potential.
“In partnership with the cultural sector and government, Arts & Business Scotland will continue to demonstrate to business and individuals the value of investing in our vibrant Scottish culture.”

HSBC, Travelex, Siemens plc, Ekspan and Sky Arts were among the big business names to be named as this year’s top collaborators with arts at the 32nd Arts & Business Awards. 

Nine awards were announced at a ceremony attended by the Minister for Culture and 400 leaders in business and the arts, hosted by the Museum of London.

Culture Minister Ed Vaizey said: 
“Enlightened business engagement with the arts is absolutely vital. It delivers benefits for the arts, for business and for society as a whole.  I applaud the ingenuity, innovation and enterprise of those businesses and arts organisations whose success is being recognised tonight. Awards like these are incredibly important in showcasing the very best partnerships and challenging other businesses to partner with the arts.”

Colin Tweedy, Chief Executive of Arts & Business, said:
“It is necessary for many arts organisations to tap into the only area of growth – business. We know that business engagement in the arts is not only critical for survival in this harsh age but actually makes good business sense. We believe culture is the most cost effective way for businesses to reach out to consumers, develop staff and take their brand around the world – and these awards demonstrate this in a powerful way.”
The winners, announced last evening at the Museum of London, are:
Jaguar Land Rover A&B Community & Young People Award
• Ekspan & Open Door Theatre

Sheffield engineering firm Ekspan transformed a 15,000 square foot factory into a theatre with Open Door Theatre Company. It is now a fully licensed arts venue hosting a wide range of community projects which involve young people and showcase local talent.

The judges applauded the journey for both partners resulting in a long-lasting outcome for the local community. They wanted to recognise the cost effectiveness of the project and the level of engagement with staff and customers as well as the community.

Anthony Bradbury, Marketing Director, Land Rover said:

“We are delighted that a company that has shown such commitment to bringing art to their local community has won this Award. Ekspan have set themselves apart by helping to create such a legacy.”

Prudential A&B People Development Award
• Siemens Plc & Hallé Concerts Society

Siemens found a way to improve change management and drive business by working with Hallé. Singing workshops aimed to push employee boundaries and results showed that actual business performance improved. Employees experienced increased confidence and a willingness to stretch themselves.

The judges felt this project was imaginative in its design and covered the dynamics between individual and collective performance. They were impressed by the involvement of all parts of business from senior management down. For the arts partner it was an excellent example of widening its business model and deepening engagement with an existing sponsor.

Rob Devey, Chief Executive, Prudential UK & Europe said:

“Siemans showed insight and imagination in their partnership with Hallé to tackle some key business performance issues. People are at the heart of business and using culture as the common language can bring the best out in employees.”

Lloyd’s A&B Business Innovation Award
• Travelex & National Theatre

This impressive programme pushed digital and technical boundaries by delivering broadcast theatre live (or as-live) from the stage in London to over 300 cinemas in the UK and around the world. Travelex, long-time sponsors of National Theatre, helped make NT Live a reality as well as supporting the global transactions.

The judges felt that this was a partnership in the truest sense, with a very innovative range of collaborative activity and campaign platforms. They felt it closely met all of the criteria for the category – breaking new markets and attracting new audiences.  In addition, the partnership had very clear and quantifiable objectives for both partners, which were not only met, but exceeded.  

Suzy Black, Head of HR at Lloyd’s, said:

“We applaud partnerships that strive to push boundaries – to take risks and reap the dividends. Travelex and National Theatre show how ambitious projects can be realised, backed by the confidence of a sound partnership.”
Classic FM A&B International Award
• HSBC & The British Museum

This project exemplified HSBC’s ‘world’s local bank’ strapline. Their support of the British Museum’s Indian Summer programme reached 2.78 million people and 5,000 HSBC customers internationally across the UK, India, Australia, the USA and the UAE.

They judges felt this was a true partnership, where both organisations extensively leveraged the sponsorship to extend their brand reputation in an international market. It demonstrated true global impact with clear measures of success.

Darren Henley, Managing Director, Classic FM said:

“This exceptional winning partnership shows how culture speaks the world over.  HSBC and The British Museum have truly used culture to engage global audiences.”

Prudential A&B Board Member of the Year Award
• John Middleton & The Broadway

During his two years as Chair of The Broadway John ensured the rise of a much needed cultural outlet in Barking. He brought in a new Artistic Director / CEO, steered in a new brand and helped diversify their funding base. A 30% increase in Black, ethnic minority and refugee audiences and participation is one key success of his tenure.

The judges were impressed by John’s personal commitment, enthusiasm and leadership style. He clearly exercised judgement about when to intervene, when to step back and when to take calculated risks.

Barry O’Dwyer, Managing Director, Retail Life and Pensions from Prudential UK & Europe, said:
“Strong leadership builds strong organisations. It is fantastic to see such impact from an individual who rolled up his sleeves and delivered real support to an arts organisation at the right time.”

Arts & Business, the body whose role is to encourage business into the arts, was dealt a massive financial blow today when it learnt this morning that the Arts Council England (ACE) is to cease any financial support by 2013 and that it will receive just £1.9 million for the coming financial year – a 50% cut on the £3.54 million it received this year.
Colin Tweedy, Chief Executive of A& B, has responded by saying: This is an extraordinary and potentially very damaging decision for our cultural and commercial partners.  As John Whittingdale, Chair of the DCMS Select Committee, in his question to the Secretary of State in the House yesterday, asked – why is it that at the very time the cultural world is looking to work more closely with business and individuals, are attempts being made to dismantle the very body that carries the hopes of the private sector?
“To many of our private sector partners it will seem that our country has no strategy, no vision and no understanding of the needs of frontline arts fundraisers for an independent voice. At this time of economic recovery, instead of building on what has been learnt, our private sector partners believe that the Arts Council has dismantled our public realm work – to little purpose and with even less of a plan. In effect our work is to be nationalised by a quango. This decision does not fit comfortably with the Government’s vision of the Big Society.”
To read more comment on this story, please visit http://www.artsandbusiness.org.uk/News/2010/october/response-to-funding-decisions.aspx

rosie@sponsorship-awards.co.uk

Arts & Business has been informed that its grant from the Arts Council England for the current financial year has been cut by four percent (£0.16 million).  Its Chief Executive, Colin Tweedy has responded by saying:  “We will endeavour to continue to do our utmost to see private sector investment in culture grow in the years to come and that the Government’s wish to see philanthropy take centre stage is realised.”
“We understand”, Colin Tweedy continued “that the Arts Council England wants to implement cuts of £19m while protecting art.  The principle by which we stand is that philanthropy is up there on the frontline, damaging philanthropy damages the arts. Any damage to us impacts on the ability of our cultural partners to raise much needed private sector funds. At this time of cuts, over 70% of arts organisations are looking to increase the amount of individual giving they raise.  They need philanthropy and Arts & Business more than ever.”

Arts & Business, in association with the National Campaign for the Arts, has created a forum with the aim of representing the UK’s cultural sector in the debate on how best to reanimate private sector cultural funding in this period of economic difficulty.
The forum will be elected from a combined cultural membership of over 1,650 members who will vote for representatives to serve, initially for a year on a consultative task force, of up to 20 members. In the first instance the forum will focus on England.
Arts & Business and the NCA will open the call for candidates this Thursday, June 17th. The vote by arts members will be at the beginning of July and the first dialogue of the elected representatives will take place before the end of July 2010.
There will also be calls for nominations from among both arts memberships including Development Directors, fundraising professionals, CEOs and trustees to serve on this advisory forum.
In addition to this, Arts & Business will create a philanthropy taskforce to advise the Ministers and work with Trusts and Foundations who support culture.

Colin Tweedy, Chief Executive of Arts & Business, has welcomed the appointment of Jeremy Hunt as Secretary of State for Culture, Olympics, Media and Sport. Jeremy Hunt who was Shadow Secretary of State for Culture Media and Sport since 2007 has inherited an enlarged brief that will include responsibility for the London Olympics in 2012 in addition to those held by his Labour predecessor Ben Bradshaw.
“We welcome the appointment of Jeremy Hunt MP as the new Secretary of State for Culture and look forward to working alongside him and his colleagues to ensure the private sector can deliver the best for the cultural sector. We know all elements of our mixed economy model are currently under strain. As a consequence, the challenge for arts organisations, our challenge, and that of this new Government will be to make every public pound go further. Arts & Business has produced a Private Sector Policy for the Arts to outline our recommendations for how best to reboot and rewire the mixed economy to those ends.
“They reflect our knowledge and mature understanding of what works in terms of creating high levels of sustained private income and support, which is often interdependent with the effective leveraging of public funds.  A clear programme combining matching grant schemes, challenge funds, new tax incentives, city-based fundraising campaigns and a greater uptake on legacies for the arts will all drive new business engagement and inspire a new generation of cultural philanthropists.
“There is collective agreement that the private sector will recover faster than the public purse from this recession. What we need to do is ensure that the private sector has more voice in how to make culture more enterprising and more opportunities to invest in culture in innovative ways. Our Private Sector Policy is a crucial step to make that happen.”