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Philanthropy in the Arts

Philanthropy in the Arts. Symphony Services International Orchestras Summit November 2011. “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.

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Philanthropy in the Arts

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  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. What’s 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 raise…a 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? • Who’s involved that I know and/or respect? • What, precisely, do they want money for? • What difference will my gift make?

  15. Critical Success Factors

  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 3Who’s 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 raise…a 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. 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 Leadership Roles & Responsibilities

  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

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