Präsentation für bf nd. tasks and topics for cultural managers. sonja ostendorf rupp
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
2
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
6
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.
7
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?
8
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
9
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
12
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
13
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
16
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
17
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
18
19. BUDGETING FOR CULTURAL PROEJCTS
Income:
Sales
Charitable Donations
Corporate Philanthropy
Foundations
Government Agencies
Ongoing Support vs. Episodic Funding
19
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
20
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
22
Photo from flickr by Tax Credits
23. MAY I ANSWER YOUR QUESTIONS?
Photo from flickr by maxigiani
23
24. THANK YOU FOR YOUR ATTENTION!
PLEASE JOIN ME IN THE IN THE CULTURAL
MANAGEMNT GROUP ON THE ALUMNIPORTAL
DEUTSCHLAND FOR FURTHER DISCUSSION.
24