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OUR PUBLICATIONS > Private investment in culture 2009/2010

CCE Research

Private investment in culture 2009/2010


May 27, 2007

Author: Tina Mermiri and Jonathan Tuchner

Institution: Arts & Business

Full reference: Arts & Business (2011) Private investment in culture 2009/2010. London: Arts & Business

Summary of key findings

This is Arts & Business’s annual report on levels of private investment in culture, for the financial year 2009/10. The report notes that for many organisations and individuals this year was considered the height of the recession and was expected to be a difficult time for the arts, as the impact of the recession was still being felt, particularly in the private sector.

Some of the main findings reported are:

  • Private investment decreased by 3% in real terms to £658m in 2009/10;
  • Private investment now accounts for 7% of total income for the arts and cultural sector;
  • 68% of private investment is concentrated in London;
  • 72% of private investment is concentrated in major organizations;
  • 38% of the sector still receives no private investment;
  • Trusts and foundations overtook business investment for the first time since 2004;
  • 45% of arts fundraisers expect private investment to increase in the next financial year, as their fundraising activities and programmes become more attractive;
  • Business investment fell for a third consecutive year;
  • Cash sponsorship and corporate donations have decreased, where as in-kind sponsorship and corporate memberships have increased;
  • Individual philanthropy is highly concentrated in London and major organisations (83% and 88% respectively).

The paper discusses the complexities of the effects of funding cuts, noting that the interdependence of organisations, individual artists, companies and institutions on each other and their sources of funding are often intricate, so cuts to one part of the system will affect another. The report is optimistic that private investment will increase in 2010/11 and will return to pre-recession levels by 2013. It notes that only around 20% of the UK-based FTSE 100 businesses currently have dynamic arts strategies, suggesting that the market is far from saturated. The report acknowledges that inspiring businesses to collaborate with the arts when times are tight will not be easy, particularly for smaller and regional organisations. It recommends that such organisations need to allocate more resources to attracting business interest. Fundraising professionals also need to better understand business thinking and their different objectives.

Research Questions & Methodology

Out of a population survey of approximately 4,500 arts organisations the researchers received close to 1,000 responses (20%), making up a representative sample of organisations of all artforms and sizes and from all the regions and nations of the UK. Consistency of response makes year-on-year comparison reliable. Respondents provided exact figures for the private investment received by their organisations for the financial year 2009/10, which was then extrapolated to cover the whole of the original population base.

Go to the journal article.