9 trends that will shape the cultural sector

WHAT’S HAPPENING NOW

The ongoing, unstable global economic situation is underpinned by threats of war and climate change, both external threats beyond the control of most of us as individuals. Yet, if you are reading this article, you are one of many who wishes to make a positive difference — wherever and however you can. I focus my energy on contributing to building a sustainable cultural sector, one that has a history of reliance on government funding, which it will continue to do so for several decades to come. However, the shaky global economic environment has a domino effect. When governments feel the economic stress of rising inflation and votes are at risk, arts funding is an easy target for budget cuts. It’s not regarded as an essential service, although I would argue the opposite. A report from the Bureau of Communications, Arts, and Regional Research shows that the cultural and creative industries contributed $122.3 billion to the Australian national economy in 2019-20.

THE REACTION

Diverse income streams are an imperative. A decline in one source of funding usually means there is shift and opportunity in another. We witnessed the cultural sector’s swift response to the impact of the pandemic by a rapid move to digital delivery models. Those innovative shifts have remained and are now considered organisational strengths, providing opportunities for global engagement and fundraising. Less government support means less guarantee of a sustainable funding model. That places increased pressure on the private sector to fill the gap. Philanthropists, who are receiving increased requests for financial support, are also aware their investment could be a high risk. This was highlighted during the pandemic when even major companies and venues, such as Sydney Symphony and Carriageworks in NSW, were financially exposed. JBWere has also reported on a trend that less people are giving more in the arts If there is a decline in financial support from government and non-government sources, where are the opportunities and what are the emerging trends? A resilient organisation is a sustainable organisation. Embracing and responding to change opens new doors for development. An awareness of shifts in the external operating environment creates new opportunities for growth. The new funding environment is creating trends that may stay with us long-term and provide solutions on how to take advantage of the growing creative economy.

J9’S TOP 9 TRENDS

This year J9 marks its ninth anniversary, so we’d like to share nine trends that will support cultural organisations in a time of economic uncertainty to increase their resilience.

1. Growth of the creative economy

Forbes (May 2023) states that the creative economy is estimated to be worth US$985 billion, with no signs of slowing down. G20 insights predict that the creative economy could account for 10% of global GDP by 2030 and Deloitte believes we will see up to 40% growth in creative sectors by 2030. In Australia, employment in the creative sector is experiencing growth at a rate surpassing that of the broader workforce by over 50%, according to the 2021 Census.

2. Technology

Use or lose, thrive or decline. The next generation of donors will be here by 2030 and digital delivery is naturally expected. Cash and cheques are obsolete, swipe and tap is so last year. Donors can engage through multiple platforms — from real life to real time. The backend of your organisation should be automated and efficient. Updates are creative and constant; tailored yet viral. The importance of personal relationships remains, but if you don’t embrace technology — AI, NFTs, cybercurrency, the metaverse — you’ll decline in relevance as others who do use it increase their efficiencies. Communication will become more intelligent, more personalised and more effective.

3. Collective impact

An effective approach for the cultural sector to use arts and creativity to contribute to social impact is to collaborate with community, government, business and philanthropists. The Stanford Social Innovation Review outlines key elements for success as having a common social agenda, a shared measurement framework, a shared plan of action, open communication and a backbone organisation with the skills and resources to keep everyone on track. A cultural organisation could play this role.

4. Shared value

Sponsorship remains a challenge for the arts. This is due to various factors such as the economic environment, the perceived return on investment and the need for businesses to offer new experiences to emerging markets, making long-term partnerships more challenging. Creative partnerships which evolve and are fresh will continue to grow. Partnerships which offer solutions to social problems will be the future as business stakeholders are seeking increased accountability. This offers an opportunity for a new framework based on shared values. This is particularly important for the cultural sector which is dealing with another emerging trend, ‘artwashing’, where those companies that need a positive image support the arts. A ‘shared values’ approach provides business and the cultural sector an opportunity to be creative and cooperate to develop strong partnerships for social impact.

Read more here in the Fundraising & Philanthropy Australia Magazine…