1. FUNDRAISING, SPONSORING
AND BUDGETING IN CULTURAL
MANAGEMENT
1 Webinar Alumniportal Deutschland
With Sonja Ostendorf-Rupp
March 8, 2013

2. FUNDRAISING AND SPONSORING IN
CULTURAL MANAGEMENT
What are the components for successful
fundraising and sponsoring in cultural
management?
Photo from flickr by Francis Storr
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3. FUNDRAISING AND SPONSORING IN
CULTURAL MANAGEMENT
Based on data and best practice examples
Sonja Ostendorf-Rupp will explain the
fundraising process and sponsoring
business including legal and ethical
frameworks, evaluating institutional
readiness, choosing communication tools,
executing the fundraising plan and project
evaluation. 3

4. BUDGETING IN CULTURAL MANAGEMENT
Photo from flickr by kenteegradin
The second part of the webinar is an
introduction to budgeting in cultural
management focusing on the arts-
specific budget items of revenue and
expenditures. 4

5. SONJA OSTENDORF-RUPP
M.A., M.C.M., PHD CANDIDATE
International experience @sonjaostendorf
in different capacities
kulturmanagementusa.
from volunteer to blogspot.de
director in multiple
disciplines.
Currently cultural
management consultant
and international
trainer based in
Hamburg, Germany. 5

6. FUNDRAISING
Definition:
Fundraising is the „process of soliciting
financial support for non-commercial
causes.“
From businessdictionary.com
Photo from flickr by Dave Dugdale
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7. FUNDRAISING LEGAL FRAMEWORK
Charitable Organizations:
 Legal definitions vary by country
 Regulation, tax treatment, and the way
which charity law affects charitable
organizations also varies.
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8. NON-PROFIT ORGANIZATION,
NOT-FOR-PROFIT ORGANIZATION,
NON-COMMERCIAL ORGANIZATION
What is a non-profit organization?
 Non-Profit is not a Business Model
 Non-Profit is a Tax Status
What constitutes a non-profit organization?
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9. FUNDRAISING ETHICAL FRAMEWORK
The mentality of fundraising, the
openness towards fundraising vary by
country based on local history and
traditions.
Photo from flickr by apparena
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10. INSTITUTIONAL READINESS
Customer
Management
Potential Donors Time
Resources
Communications Personnel
Strategy
Time Management Budget
Fundraising
Convincing Cause,
Vision,
Image
Case For Support
Unique Giving 10
Proposition

11. PLANNING A CAMPAIGN
 InstitutionalReadiness
 Fundraising Plan
 Define Vision, Case For Support, Financial
Goal and Timeframe
 Analyze Potential Donors
 Choose Your Communications Tools
 Make A Schedule
 Who Does What
 Set A Budget
 Evaluate 11

12. COMPONENTS FOR SUCCESSFUL
FUNDRAISING
 Adequate Resources (Time, Personnel, Budget)
 Strategic Planning
 Convincing Vision
 Plausible Cause and Financial Need
 Potential Donors
 Advocates
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13. SPONSORING
Definition:
„A sponsor is a person or organization that
pays for or contributes to the costs involved
in staging a sporting or artistic event in
return for advertising.”
From oxforddictionaries.com
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14. SPONSORING
Fundraising Sponsoring Advertising
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15. SPONSORSHIP TAX SITUATION
A Sponsorship is considered tax
deductible for the sponsoree when no
substantial benefit is provided to the
sponsor.
 If the recognition amounts to a
substantial benefit it becomes income
from advertising and is no longer tax
deductible for the non-profit.
 It may still qualify as a deductible
business expense for the for-profit. 15

16. THE SPONSORSHIP PROPOSAL:
MATERIALS TO PREPARE
 Written Project Description
 Sponsorship Levels and Recognition
Opportunities
 Short Business Plan
 Budget
 3 Year Financial Plan
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Photo from flickr by Kasaa

17. COMPONENTS FOR SUCCESSFUL
SPONSORING FOR CULTURAL PROJECTS
 Think From A Sponsor´s Perspective
 Thorough Sponsor Research
 Evaluate And Quantify What You Can Offer
 Set Clear Expectations
 Written Agreement
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18. BUDGETING FOR CULTURAL PROJECTS:
WHAT FORMAT TO CHOOSE?
ART CAMP 2013
COLUMN A COLUMN B COLUMN C
1. PROJECT EXPENSES Amount Cash (c) / In-Kind (i) /
ITEMIZE EXPENSES List Currency Amount Both (b)
Art Teacher Fees € 100 c
Facility Rental € 500
@100/day x 5
...
2. TOTAL PROJECT EXPENSES € 600
COLUMN A COLUMN B COLUMN C COLUMN D
3. PROJECT INCOME Cash Amount In-Kind Amount Confirmed (C) /
ITEMIZE INCOME SOURCES List Currency Amount List Currency Amount Anticipated (A)
Grant from Foundation XYZ € 500 A
Crafts Store € 100 C
...
5. TOTAL CASH INCOME € 500
6. TOTAL IN-KIND CONTRIBUTIONS € 100
7. TOTAL INCOME € 600
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19. BUDGETING FOR CULTURAL PROEJCTS
Income:
 Sales
 Charitable Donations
 Corporate Philanthropy
 Foundations
 Government Agencies
Ongoing Support vs. Episodic Funding
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20. BUDGETING FOR CULTURAL PROEJCTS
Expenses:
 Fixed Costs
 Program Costs
 Assign Indirect Program Costs
 Fundraising Costs
 Assign Indirect Program Costs
 Add Subtotals and Budget Total
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21. SPECIFICS BY DISCIPLINE
Performing Arts:
Largest budget item is services
Museum/Gallery/Exhibition:
Art Insurance, Handling&Shipping,
Conservation
Festivals:
Rentals 21

22. COMPONENTS FOR SUCCESSFUL
BUDGETING?
 Keep it in a format that is readible for the
untrained eye
 List expenses/income as detailed as
possible
 Income > Expenses
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Photo from flickr by Tax Credits

23. MAY I ANSWER YOUR QUESTIONS?
Photo from flickr by maxigiani
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24. THANK YOU FOR YOUR ATTENTION!
PLEASE JOIN ME IN THE IN THE CULTURAL
MANAGEMNT GROUP ON THE ALUMNIPORTAL
DEUTSCHLAND FOR FURTHER DISCUSSION.
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