Philanthropy in the Arts

1
Philanthropy in the Arts

• Symphony Services International Orchestras Summit
• November 2011

2
Apart from the ballot box, philanthropy presents
the one opportunity the individual has to express
a meaningful choice over the direction in which
our society will progress. George Kirstein
3
Philanthropy in Context
4
Growth in individual giving
There has been a huge rise in philanthropic
donations over the past 2 decades. In 2008-9
growth was checked by the global financial
crisis. For the first time in well over a
decade the number of taxpayers claiming
tax-deductible donations increased, but the
amount of these donations decreased.
Source Giving Australia, 2005 and Current
Issues Information Sheet 2011/12, Australian
Centre of Philanthropy and Nonprofit Studies, QUT

5
Giving to the Arts in Australia

• Giving Australia recorded an increase in giving
  to the arts and culture between 1997 and 2004
  although it represented the smallest percentage
  of total giving for that period.

Source Giving Australia, 2005
6
However as the Major Performing Arts companies
have invested in building relationships and
fundraising over the past decade, they have begun
to reap the rewards.
Source AMPAG Tracking changes in corporate
sponsorship and private donations 2011
7
Today private giving contributes almost as much
as corporate sponsorship to MPAB companies. In
some cases, it has already overtaken corporate
support. This is no coincidence.
Source AMPAG Tracking changes in corporate
sponsorship and private donations 2011
8
The rise of the Private Ancillary Fund
Introduced by Commonwealth Government in 2001 as
Prescribed Private Funds (re-defined as Private
Ancillary Funds in 2009), these tax vehicles have
proved attractive to high net worth individuals.
By 31 October 2009 there were 769 PPFs in
total. 170 were approved in 2007 alone.
Source J B Were Philanthropic Services,
Australian Tax Office
9
The arts fares particularly well from this group
with a total of 63.2m distributed to Cultural
Organisations between 2002-2008 (second only to
Welfare). In 2007-8 Cultural Organisations
represented the highest percentage of total
distributions.
Source J B Were Philanthropic Services,
Australian Tax Office
10
What conclusions can we draw?

• There has been huge growth in giving by
  individuals to all causes over the last two
  decades
• Individuals give substantially more than
  corporates
• There is a relationship between income / wealth
  and giving
• The arts and culture are popular among potential
  major donor groups
• Investment in building relationships works!

11
Whats next?

• We need to think harder about ourselves as a
  cause
• We must make development a whole-of-organisation
  commitment
• We must work at both ends of the pyramid
• At the base to build the pipeline
• At the top to generate major gifts
• We absolutely must be better at major donor
  solicitation
• Then we can think about endowment

12
It takes a village to raisea major gift

• Symphony Services International Orchestras Summit
• November 2011

13
Gift types

14
Questions a major donor asks himself

• Do I have a compelling, driving belief that this
  organisation is singularly important?
• Is it well run or will they squander my money?
• Whos involved that I know and/or respect?
• What, precisely, do they want money for?
• What difference will my gift make?

15
Critical Success Factors
Vision and case for support A concise, compelling vision and case for support which will enthuse and excite potential donors   A convincing organisational strategy
Strong internal leadership Strong internal leadership capable of inspiring, responding to and managing change, and of interacting credibly with both internal and external constituencies
Committed external leadership Strong external leadership volunteers and ambassadors who provide external credibility and access to new networks
Prospects programs Ability to identify a pool or network or potential sponsors/donors who share the organisations aims and vision and have a capacity to give   Mechanisms to engage and involve them in the life of the organisation and to reward them for their support and involvement
Skills resources Professional fundraising expertise and adequate resources focused on maximum return on investment   A cogent and accessible set of data on current and prospective donor communities   Effective performance measures
16
Group 1Do I have a compelling, driving belief
that this organisation is singularly important?

• How can we demonstrate to this donor that we
  matter and we have a unique contribution to make?
• What role can the following roles and functions
  play?
• Board
• CEO
• Marketing/Communications
• Artists
• Other donors

17
Group 2Is it well run or will they squander my
money?

• How can we demonstrate to this donor that we will
  spend their money wisely and achieve our (and
  their) objectives?
• What role can the following roles and functions
  play?
• Board
• CEO
• Marketing/Communications
• Artists
• Other donors

18
Group 3Whos involved that I know and/or
respect?

• How can we create or capitalise on a peer group
  network that will convince this donor?
• What role can the following roles and functions
  play?
• Board
• CEO
• Marketing/Communications
• Artists
• Other donors

19
Group 4What, precisely, do they want money for?

• How do we go about developing and articulating
  the case for support?
• What role can the following roles and functions
  play?
• Board
• CEO
• Marketing/Communications
• Artists
• Other donors

20
Group 5What impact will my gift make?

• How do we go about developing the right ask for
  this prospect? What should they expect in
  return?
• What role can the following roles and functions
  play?
• Board
• CEO
• Marketing/Communications
• Artists
• Other donors

21
It takes a village to raisea major gift

• Symphony Services International Orchestras Summit
• November 2011

22
Leadership Roles Responsibilities
23
The CEO, Executives and other organisational
leaders should commit the necessary time, energy
and resources to create an environment where
philanthropy can flourish.
24
Leadership Roles Responsibilities

• Executive
• Secure the active support of all departments
• Set targets, projects and resources
• Engage the Board
• Engage the involvement of external senior
  volunteers

• Board
• Set the tone and articulate the vision
• Raise donors sights and encourage stretch
  giving
• Enlist senior volunteers and donors by example
• Guarantee effective stewardship of donations

25
CEO/General Manager

• Public face of philanthropy
• Understand and articulate the impact of
  philanthropy
• Inspire the Board, volunteers and staff
• Ensure unity among staff
• Make the ask
• Close negotiations

26
Artistic Director

• Drive the vision and case for support
• Make time available to spend with prospects and
  donors
• Inspire volunteers and donors
• Feed back prospect information to Development
  team

27
Philanthropy Director

• Devise, articulate and implement strategy
• Manage the organisation and performance of
  development/fundraising process
• Educate Executive and Board
• Manage volunteers
• Ask
• Negotiate