Katriona Holmes attended a presentation by Arts & Business Scotland (A&BS) that provided information on securing private funding for cultural organizations. The presentation included details on A&BS services, sponsorship, grants, crowdfunding, and a new initiative called "Love the Arts, Leave to the Arts" which encourages legacy giving. Examples were also given of successful crowdfunding and sponsorship matches made through A&BS's New Arts Sponsorship Grants program.

1. Katriona Holmes
Projects Manager
Moray Arts Centre Friday 2 November 2012

2. Take home material
 A&BS Services for
Cultural Organisations
 Case for Sponsorship
 NAS grants
 Crowdfunding
Business membership
Love the arts, leave to the
arts

3. Welcome to Arts & Business
Scotland - who we are
 Scottish business and arts membership organisation;
established in Scotland for over 25 years;
 Devolved from UK organisation 1st November 2011 –
independent registered charity
 9 staff in Edinburgh office
 Funding from Scottish Government and Scottish
cultural agencies
 Encourage businesses to engage with the arts
 Advise/train the arts to help secure support from the
private sector

4. Business Members
• Advice & consultancy
• Volunteering in the arts
• Networking
• Events
• Monthly e-newsletter

5. Arts Services
We support the arts community in the development
of private sector support
 Training
 Advice
 Consultancy
 Arts Membership:
Development Forum
Business Digest
Master Class series
Business intelligence
Board & Skills Bank
Board Governance
Arts & Business Awards

6. Further queries
Arts membership:
Carol Taylor
Arts Services Manager
E carol.taylor@aandbscotland.org.uk
Business membership:
Ciara Kenealy
E ciara.kenealy@aandbscotland.org.uk
T 0131 556 3353
W www.aandbscotland.org.uk

7. Crowdfunding
www.aandbscotland.org.uk/crowdfunding

8. Crowdfunding
Crowdfunding is a way to collect money from
lots of contributors through the internet.
A great example of successful crowdfunding is
the presidential campaign of Barack Obama in
2008.
Fundraising records were broken as the Obama
campaign raked in $750 million over 21 months.
More than 80% of this money came in as small
donations of less than $200. Now that’s an
engaged crowd!

9. Why is crowdfunding important?
• Its an enterprising solution to raising funds
which cuts out traditional funding
approaches and requirements
• It mobilises new money when traditional
support is less available
• It enables communities to mobilise around
the things they want to see happen.
Communities become investors in their own
future
• These communities can be international
• It’s a good indicator of the eventual success
of your project

10. Crowdfunding now
• There are a number of creative
crowdfunding sites in the UK
• They differ slightly in rates and you should
research which one is best for you.
• Some allow you to keep the funds if you do
not raise the target amount, others use an
‘all or nothing’ approach, where the project
will only happen if all the funds are raised.

11. Scottish examples
Successful target funded Scottish projects
Theatre: http://www.peoplefund.it/shhh-the-edinburgh-festival-fringe/
Film: http://www.sponsume.com/project/munro-film-production
Literature: http://wefund.com/project/misdirection-a-novel/p45627/
http://www.sponsume.com/project/hamish-henderson-archive
Other funded Scottish projects
Dance: http://www.sponsume.com/project/curious-seed-p-u-s-h
Design: http://www.pleasefund.us/projects/help-us-grow-into-new-designers

12. Love the arts, leave to the arts is a new initiative
from A&B Scotland to encourage art lovers to
leave a legacy to cultural charities.
During February 2013 supporters of the arts will
have the opportunity to get a basic Will
professionally written, or amended, free of charge
by participating law firms if they leave a legacy to a
Love the arts, leave to the arts charity.
A toolkit on legacy giving is available to arts
members

13. Sponsorship - definition
• The payment to an arts organisation by a business in
exchange for agreed benefits such as promotion of the
business’s name, its products or services. Sponsorship
is part of a business's general promotional
expenditure.
• It can (an increasingly does) encompass a sense of
corporate social responsibility (CSR) or staff
development

14. Sponsorship & other funding
What’s the difference?

15. Sponsorship - tax basics
• VAT must be charged on cash and inkind sponsorship
• If not VAT registered, check sponsorship does not take
your organisation over the VAT threshold
• For information about the tax implications of charitable
support and charity taxation, visit:
• HM Revenue & Customs ww.hmrc.gov.uk

16. What’s the Difference?
• Earned income
• Subsidy
• Grant
• Donation

17. Definition of Donations
• Donations are ‘gifts’ for which no return is asked or
given
• No tax paid on income from donations
• Limits to donor benefits:
• e.g. Up to £25-worth of benefits for a £100
donation
• The A&B Tax guide – introduction to tax-efficient
giving to the arts www.aandbscotland.org.uk

18. Gift Aid
• Registered charities can claim an extra 25p from
HMRC for every £1 they receive as a donation (of
any size) from a tax-paying individual.
• The Donors must sign a gift-aid declaration
• Donations from companies are not eligible
• Only the business is able to claim back Corporate
Gift Aid on their donations.
• For information on how to claim Gift Aid back from HM
Revenue & Customs, visit www.hmrc.gov.uk

19. Why do businesses sponsor the arts?
• Brand promotion
• Access to target markets
• Awareness-raising and image enhancement
• Differentiation
• Associations with excellence
• Internal marketing
• Staff, customer & shareholder goodwill
• Creative development
• Volunteering opportunities
• CSR – putting something back
• Develop community links
• Environment / ethics
• Employees
Fulfilling business objectives

20. Value of the arts
• Holistic - branding, employee and CSR benefits
• Emotional value
• Press coverage
• Synergy
• Employee relations
• High value venues
• Appeal to a diverse market
• Highly targeted
• Enjoyable!

21. New Arts Sponsorship Grants
Funded by the Scottish Government and
administered by Arts & Business Scotland in
partnership with the Creative Scotland

22. New Arts Sponsorship Grants
• Scheme began in 2006
• Approximately 300 businesses have seen
their sponsorships matched
• Average Grant is between £5,000 and
£10,000
• Average 43 Grants committed a year
• £300,000 has been committed by the
Government per year for the next three
years from 2012/13 until 2014/15
New Arts Sponsorship Grants 22

23. Objectives
• Increase number of businesses sponsoring
the arts in Scotland
• Support cultural organisations in their
business development by helping to attract
new businesses to the sector
• Entice non-Scottish-based companies to
sponsor arts activities in Scotland
New Arts Sponsorship Grants 23

24. Key principles
• £1 for £1 match funding. Minimum
sponsorship amount of £1,000, a maximum
of £40,000
• Sponsorship can be cash or in-kind
• Business must be sponsoring arts in
Scotland for the first time (or not have
sponsored since 1 April 2009)
• The Grant should double the original
sponsorship benefits to the business.
New Arts Sponsorship Grants 24

25. The grant can be used to:
• Contribute to delivery of sponsored project
as a whole
• Extend the sponsored project (i.e. provide
more of the same)
• Create new arts activity
The grant must be used for arts activity
New Arts Sponsorship Grants 25

26. Who can apply? Arts
• Arts - performing arts, literature, visual arts and crafts,
museums, heritage, architecture, film and TV
• Non-arts organisations if producing arts activity
• No single arts organisation can receive grants totalling
more than £40,000 in any one year
• If more than one eligible business sponsor for the
same arts activity, a separate application can be
made for each
New Arts Sponsorship Grants 26

27. Who can apply? Business
• Business must be first time (or returning) sponsor of
arts activity in Scotland
• Business does not need to be based in Scotland
• Clearly differentiated business units within a company
may be considered as separate sponsors (provided
sponsorship is eligible)
• If business meets criteria, it can make more than one
application against all eligible arts sponsorships made
by it within 12 months of first grant application
• No business or business unit can receive grants
totalling more than £40,000
New Arts Sponsorship Grants 27

28. We will not match:
• Sponsorship (cash or in kind) of less than £1,000
• Corporate donations or corporate memberships
• Food or drink as part of corporate hospitality event
• Grants or charitable donations from a trust or foundation
funded by profits from a business
• Appeal funding (unless business receiving clear sponsorship
benefits)
• Volunteering of staff time
• Use of business premises for meetings
• Payments or fees to agents, such as sponsorship consultants
New Arts Sponsorship Grants 28

29. Applications
• Application form - download from A&BS website
• Arts or business partner can complete (both must
agree/sign)
• Application accompanied by relevant documentation
(signed sponsorship agreement, child protection
policies, etc)
• Application must be made BEFORE sponsored activity
has started and must be made at least two months in
advance of the proposed grant funded activity. We will
not match sponsorships retrospectively
• No closing dates - applications assessed as they are
received. Decisions within 6 weeks
New Arts Sponsorship Grants 29

30. Firefly Arts & BCF Technology
New Arts Sponsorship Grants 30

31. Firefly Arts & BCF Technology
Cash sponsorship to fulfil the
company’s CSR objectives.
Sponsorship benefits:
•credit on all Firefly Art promotions for the
duration of the project.
•20 free tickets for the Dracula performance,
and further concessionary tickets if required for
BCF staff.
New Arts Sponsorship Grants 31

32. Firefly Arts & BCF Technology
A Grant went towards the overall costs
of the project.
Additional benefits:
•4 team building workshops for its staff
delivered by Firefly Arts.
•further free and concessionary tickets
•further crediting on Firefly promotional material
for the next five months after the project
finished
New Arts Sponsorship Grants 32

33. Bridge of Don Community
Partnership and Mitsubishi
New Arts Sponsorship Grants 33

34. Bridge of Don Community
Partnership and Mitsubishi
Cash sponsorship to highlight the connection
between Mitsubishi and Bridge of Don and
promote Mitsubishi as a responsible business
partner for Scotland.
Sponsorship benefits:
•credit as main event sponsor in all publicity and
announcements.
•Mitsubishi’s CEO given main speaker slots at
the Scottish Samurai Gala.
New Arts Sponsorship Grants 34

35. Bridge of Don Community
Partnership and Mitsubishi
A Grant went towards extending the Japanese
Arts and Culture workshops including into hard
to reach communities.
Additional benefits:
•Credited against all additional events in the
workshop programme offering further reach into
the community
•Tickets for use by employees to all workshops
and events.
New Arts Sponsorship Grants 35

36. Glasgow Women’s Library and
Danwood Scotland
New Arts Sponsorship Grants 36

37. Glasgow Women’s Library and
Danwood Scotland
Cash and in-kind sponsorship in the form of a
home cinema system for a fundraising auction,
and photocopier and printing free of charge.
Sponsorship benefits:
•a permanent acknowledgement within GWL’s
new premises
•logo added to all relevant GWL publicity and
the opportunity to display the company’s own
publicity at GWL events
•credits on GWL’s annual report and website.
New Arts Sponsorship Grants 37

38. Glasgow Women’s Library and
Danwood Scotland
A Grant went towards GLW’s 2010
autumn/winter lifelong learning programme on
Media Literacy
Additional benefits:
•further credit as the funder of these activities
•tickets to events including heritage walks
•display space at the courses and film
screenings
•verbal acknowledgements at the start of each
session.
New Arts Sponsorship Grants 38

39. Any questions please contact:
Fiona Holt
Finance Manager
E Grants@aandbscotland.org.uk
T 0131 556 3353
W www.aandbscotland.org.uk
New Arts Sponsorship Grants 39