[PDS] Funding your Show - Peter Fraser


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Peter Fraser of Insight Education [www.insighteducation] and Tiresias Media [www.tiresiasmedia.com] talks about the comparative advantages of crowd funding versus conventional fund raising channels.

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[PDS] Funding your Show - Peter Fraser

  1. 1. Crowd funding the Arts Contact: [email_address]
  2. 2. About Me <ul><li>www.insighteducation.org.uk </li></ul><ul><ul><li>International Moving Image Events, Training, Programming, Development and Consultancy </li></ul></ul><ul><li>www.tiresiasmedia.com </li></ul><ul><ul><li>International Moving Image Production Company and Consultancy covering film, TV, and online creating fiction, documentary and visual art </li></ul></ul>
  3. 3. About InSight <ul><li>Training </li></ul><ul><li>Workshops </li></ul><ul><li>Masterclasses </li></ul><ul><li>Symposia </li></ul><ul><li>Panel Events </li></ul><ul><li>Screenings </li></ul><ul><li>Festivals </li></ul><ul><li>International </li></ul>
  4. 4. Cultural Events <ul><li>Among other things culture collectively imagines what is true and possible </li></ul><ul><li>There are many cultures and sub-cultures but within them they have common values, identities, histories and communities </li></ul><ul><li>Events bring people together for a shared purpose and so can offer powerful and memorable collective experiences </li></ul>
  5. 5. <ul><li>Collective experiences are only more relevant in a fragmented and media saturated world where we tend to be at one remove </li></ul><ul><li>That means that events are very useful for every industry because they offer physical presence and a profile that can attract audiences, consumers and media </li></ul><ul><li>What are some of the purposes of events? </li></ul>
  6. 6. (Some) Purposes <ul><li>Promotion </li></ul><ul><li>Celebration </li></ul><ul><li>Commerce </li></ul><ul><li>Exhibition </li></ul><ul><li>Discussion </li></ul><ul><li>Entertainment </li></ul><ul><li>Education </li></ul><ul><li>Demonstration </li></ul><ul><li>Engagement </li></ul>
  7. 7. <ul><li>For cultural events think about the media profile in advance and plan accordingly </li></ul><ul><li>Social Networking is essentially word of mouth and events foster word of mouth or ‘buzz’ </li></ul><ul><li>Because events bring people together things can change at an event or as a result </li></ul><ul><li>Events can consolidate but also innovate new ideas and new ways of thinking about ideas </li></ul>
  8. 8. Marketing / Promotion <ul><li>Marketing – consumer facing (e.g. advertising) </li></ul><ul><li>Public Relations – reaching the public through media (e.g. by placing editorial) </li></ul><ul><li>Digital Marketing – The most cost effective way to market and, unless you have a big budget, one of the best. However it will cost you TIME </li></ul><ul><li>Audience Development – Reaching, attracting, communicating with, developing and maintaining audiences. Begin a conversation around your events with feedback forms, emails and online media </li></ul>
  9. 9. Conventional Funding <ul><li>Arts Council England funding </li></ul><ul><li>National Lottery funding opportunities </li></ul><ul><li>Grant opportunities for students </li></ul><ul><li>European Union funding schemes </li></ul><ul><li>Local authority support for the arts </li></ul><ul><li>Trusts, foundations and private giving </li></ul><ul><li>Voluntary and community groups funding </li></ul><ul><li>Grants scheme for arts graduates from deprived backgrounds   </li></ul>
  10. 10. Conventional Funding <ul><li>Large amounts from a few people </li></ul><ul><li>Small amount from many people </li></ul>
  11. 11. <ul><li>People often think of conventional sources of funding or believe it is better to go for larger amounts from wealthy individuals or organisations BUT </li></ul><ul><ul><li>This also takes time and labour </li></ul></ul><ul><ul><li>It can be expensive (hospitality, travel) </li></ul></ul><ul><ul><li>It can be bureaucratic </li></ul></ul><ul><ul><li>It is very competitive – high failure rate </li></ul></ul><ul><ul><li>It comes with strings attached </li></ul></ul><ul><ul><li>It’s often not suitable for smaller projects </li></ul></ul><ul><ul><li>It is not integrated into the rest of the process </li></ul></ul>
  12. 12. What is Crowd Funding? <ul><li>Crowdfunding allows regular people to raise money (usually via the Internet) for the personal projects, ideas, events and initiatives that matter to them most. Supporters donate to the people and causes they believe in. </li></ul><ul><li>Crowdfunding helps people collect the money needed to bring their fundraising ideas to life. </li></ul>
  13. 13. <ul><li>Unlike traditional models which rely on large commitments from one or two institutions crowd funding is based on raising smaller sums from lots of people, who may be linked by social networks or shared interests. </li></ul><ul><li>It allows you fund and build an audience or receive money upfront from your potential audience to make the project happen. </li></ul>
  14. 14. <ul><li>Can potentially be used as match funding for Arts Council applications </li></ul><ul><li>Some of the groups that apply to WeFund have already received Arts Council funding, but are seeking a “top-up” </li></ul><ul><li>Track record and partner are less important </li></ul>
  15. 15. <ul><li>It reaches a young demographic </li></ul><ul><li>Quickly demonstrates what is popular </li></ul><ul><li>It build an audience and potential partners </li></ul><ul><li>It links to social networks and mobilise community resources online and off </li></ul><ul><li>Low cost and less risk </li></ul><ul><li>It’s democratic </li></ul>
  16. 16. <ul><li>Organisations who already have a huge profile and marketing will still raise more money </li></ul><ul><li>But… </li></ul><ul><li>It does offer many more opportunities for to build up a funding model through networks </li></ul>
  17. 17. Case Study: We Fund <ul><li>I n return for donations, WeFund offer perks that range from a mention in the programme for a small sum to private performances for bigger gifts. </li></ul><ul><li>Among companies using the model to solicit donations are Love&Madness, which wants to mount its production of Richard III at the Tower of London, and OperaUpClose, which wants £5,000 to fund a production of Madam Butterfly set in present-day Bangkok. </li></ul><ul><li>The opera company is offering “a massive thank-you on the website” for donations of £1 or more; a programme credit as a producer for £50 or more; and a promise to “come en masse to your house and perform Madam Butterfly just for you” for £3,000 or more. </li></ul>
  18. 18. <ul><li>Michael Troughton, who founded the WeFund website, said he was encouraging arts lovers to engage in “micro-philanthropy”. “We are not after the John Studzinskis of the world,” he said, referring to an arts patron who has made a series of large donations. “We are talking about the kind of people who, instead of buying a book or a concert ticket, can use the same amount of money to back a new play.” </li></ul>
  19. 19. The Potential <ul><li>According to Arts and Business individual giving (donations, friends schemes, give as you earn, gift of shares and legacies) is the largest single source of private investment in the UK today. </li></ul>
  20. 20. <ul><li>What is low- and mid-level giving? </li></ul><ul><li>Low-level giving is up to £100 but normally between £5-£10; Mid-level giving is up to £1,000, but normally it is below £500; Around 90% of donations received by cultural organisations are low- and mid-level donations (most frequently low-level); </li></ul>
  21. 21. <ul><li>Larger organisations do seem to receive a greater number of donations but organisational size is not necessarily a condition of capacity. </li></ul><ul><li>There are a smaller organisations running very successful individual giving programmes; these types of donations to small and micro-sized organisations can make a visible difference and provide a regular and sustained source of income; </li></ul><ul><li>Donors who give several times throughout a year tend to give a larger overall financial donation than those who give once – the message is to get people to keep giving small amounts regularly. </li></ul><ul><li>90% of donors come from the most committed art attendees – having attended the venue/organisation three or more times in the past two years; </li></ul><ul><li>Three-quarters of donors were engaged with the organisation in some manner from members/visitors, a friend, patron, on a mailing list, volunteers through to trustees. </li></ul>
  22. 22. <ul><li>The three main motivating factors found were: </li></ul><ul><li>Artistic/cultural – factors such preservation, quality and development of the artform; </li></ul><ul><li>Institutional – a special connection with the organisation and a desire for its sustainability; </li></ul><ul><li>Philanthropic – a feeling of social and civic responsibility. </li></ul><ul><li>Reasons around local pride and a personal connection were the most commonly cited reasons for giving to a particular organisation; </li></ul><ul><li>So what motivated their first ever donation? The answer is simple – being asked! Direct approaches activated 40% of first-ever donations. </li></ul>
  23. 23. <ul><li>However you still need to reach your funders and to reach enough people for small donations to make a difference so a profile helps. How do you build a profile? </li></ul><ul><li>Mailing list </li></ul><ul><li>Past Events </li></ul><ul><li>Venue </li></ul><ul><li>Social Networking </li></ul><ul><li>Linking to other organisations and partners </li></ul><ul><li>Crowd funding sites </li></ul>
  24. 24. Leading crowd funding sites <ul><li>Kickstarter - www.kickstarter.com </li></ul><ul><li>IndieGoGo - www.indiegogo.com </li></ul><ul><li>WeFund - www.wefund.co.uk </li></ul><ul><li>WeDidThis - www.wedidthis.org.uk </li></ul><ul><li>BuzzBnk - https://prod.buzzbnk.org </li></ul><ul><li>Pozible - www.pozible.com.au </li></ul><ul><li>Sponsume - http://www.sponsume.com </li></ul><ul><li>RocketHub - http://rockethub.com </li></ul><ul><li>Feed the Muse - http://www.feedthemuse.net </li></ul>
  25. 25. Step by step <ul><li>What is your project? </li></ul><ul><li>Why, what, who, when, where, how </li></ul><ul><li>Write and executive summary and breakdown </li></ul><ul><li>Who are your collaborators and audience? </li></ul><ul><li>What is your timeline and deadline? </li></ul><ul><li>What is the total amount you need to raise? </li></ul><ul><li>Why would people donate to your project? </li></ul>
  26. 26. How they work <ul><li>Project based </li></ul><ul><li>Set a target amount of money and deadline </li></ul><ul><li>Keep the target small and realistic and add 10% </li></ul><ul><li>Invite people to donate on the site through Pay Pal (generally offering incentives for different levels of donation) </li></ul><ul><li>Monitor how you’re performing </li></ul><ul><li>If you reach the target the site takes a commission (normally 5% + Pay Pal fee) and you draw down the money </li></ul><ul><li>If you are unsuccessful the money is returned and there is no charge to you (IndieGoGo lets you keep the money) </li></ul><ul><li>There are now sites for specific activities or industries and new ones are appearing all the time </li></ul>
  27. 27. Crowd Funding in instalments <ul><li>You don’t have to raise the money all at once </li></ul><ul><li>For crowd funding small achievable amounts work better. People won’t donate if it seems unrealistic and on some sites if you don’t make your target all the money is returned </li></ul><ul><li>But for larger projects you can raise money in instalments . £2000 for the first stage, £4000 for the second etc. This allows you to raise the stakes as you go along and things become less risky. </li></ul><ul><li>To raise very large amounts you would need more resources and a larger profile but you can build support through social networking such as facebook and twitter. </li></ul>
  28. 28. Studies <ul><li>Arts and Business - Very useful organisation helps business people to support the arts and the arts to inspire business people ( www.artsandbusiness.org.uk ) </li></ul><ul><li>Arts Council – Three year research into digital opportunities. (www.artscouncil.org) </li></ul>
  29. 29. Making Money <ul><li>Budget carefully </li></ul><ul><li>Total Cost and Cash Flow </li></ul><ul><li>Value your Time and your Product </li></ul><ul><li>Market / Audience Analysis </li></ul><ul><li>Market / Audience Development </li></ul><ul><li>Cultivate a brand / reputation </li></ul><ul><li>Cultivate a profile and network </li></ul><ul><li>Don’t do things just to make money </li></ul>
  30. 30. Tips… <ul><li>Get connected and networked </li></ul><ul><li>Cultivate a peer group and by extension, an audience (but don’t second-guess the audience and try to stay one step ahead rather than reacting to trends) </li></ul><ul><li>Pool your talent, contacts and resources </li></ul><ul><li>Actively seek out mentors and patrons </li></ul><ul><li>Be bold, dynamic and persevere if you and people you trust believe in what you’re trying to achieve </li></ul><ul><li>Love what you do and do what you love </li></ul><ul><li>Research your field / market and know it intimately </li></ul><ul><li>Look for successful existing models </li></ul>
  31. 31. <ul><li>Seek out and study the best </li></ul><ul><li>Strive to innovate through: </li></ul><ul><ul><li>Old ideas in new contexts </li></ul></ul><ul><ul><li>New ideas in old contexts </li></ul></ul><ul><ul><li>Be courageous but beta test what you do </li></ul></ul>
  32. 32. Contacts <ul><li>For training in Arts Event Management or events and training in other areas visit www.insighteducation.org.uk or email [email_address] </li></ul><ul><li>For enquiries related to moving image production or consultancy visit www.tiresiasmedia.com or email [email_address] </li></ul>