A New Approach to Funding the Arts

Sponsorship in the arts is declining but there is a way to reverse the trend

In 1984, a group of 600 people got together and bought a theatre which was on land marked for the development of apartments in Surry Hills, Sydney. This is Gadigal land, a place where stories have been told for thousands of years. This purchase meant the storytelling could continue, now from the stages of Belvoir St Theatre. Over 20 years later, funds still needed to be raised to keep the theatre alive. That’s when I joined the creative sector as Corporate Partnerships Manager to bridge business and the arts. At the time, the word ‘corporate’ didn’t sit well in the bohemian arts world and Belvoir was the last bastion of equality with all staff paid the same wage regardless of expertise. Not only did I need to secure business partners, I needed to create an organisational shift to show that ‘corporates’ also bought tickets, loved the arts and regarded a glimpse of life behind the scenes as a privilege, often taken for granted by those in the industry. It worked. Our corporate partnerships were recognised with national awards and the funds rolled in. In the 2000s, businesses partnered with the arts for brand awareness, staff engagement, community engagement, customer retention, networking and growth. Those motivations haven’t changed much, but other things have. No longer are business partnerships based on the preference of the Chair. Evidence of partnerships rolling over year on year is scant as brands evolve but arts organisations don’t. Businesses no longer need a print program to promote a logo. Major sporting and entertainment events have a wider reach due to media rights even though 98% of Australians engage with the arts, according to Creative Australia. Creative Australia’s Giving Attitude 2.5 reported a decline in cash sponsorships for the arts from $103 million to $80 million although in-kind sponsorship support rose from $25 million to $38 million between 2022 and 2023. JBWere reported that “corporate giving and community investment, alongside highnet- worth giving, is the fastest growing and least understood segment of social impact funding” in 2022.

So can the cultural sector reverse its current trend with the corporate sector?

REVERSING THE TREND

The for-purpose sector has been around as long as we’ve had communities in need, but over the last 20 years we’ve seen an increased emphasis of purpose over profit in the business sector. The evolution of B Corps, value creation, social enterprises, community investment, workplace giving and more is in response to an interest in social impact and sustainability. Social impact is also of increasing interest to

shareholders. Investors are still seeking returns, but no longer is it about profit for profit’s sake. Companies need to show investors that they profit as a result of their purpose. Companies are being asked to report on non-financial measure such as environmental issues, social issues and corporate governance. This is evidenced by the growth in sustainable investment. JBWere reports that 36% of all professionally managed funds now use some sustainability strategy in their asset selection process, up from 28% in 2016.

Read more here in the Fundraising & Philanthropy Australia Magazine…