Uncertain futures

This is an historic moment in the post-war period of how the arts are funded. We have seen some of the biggest global sponsors go bust and remain unsure how much of their funding is still protected in corporate foundations, if they had them. We have also seen that disaster for some is financial reward for others. How can the arts world and commercial partners resist, absorb, accommodate and adapt to this profound realignment of values? What does this all mean for collaborations between arts and business? How can we remain responsive to new possibilities and ensure that the private sector invests in and supports the arts, both politically and philanthropically?

There is an irremediable tension between art and commerce. Some say, like Paul McGuinness, the brilliant founder-manager of U2, the world’s best selling band, that there is no point in having the best music skills if you don’t have the best business skills to back them up. Others contend that for an artist or writer to be ‘successful’ means posterity, not money. Artistic integrity requires them to sign a self-denying ordinance so far as commerce is concerned.

Changing parameters

The recent success of the arts in the UK has not happened by chance. We need stability of funding from the public and private sectors, effective arts managers, artistic skills and product and a growing audience. We are enjoying a decade of increased overall investment in culture from the public and private purse. How can we anticipate a more progressive collaboration with the commercial sector with both sectors feeding off one another?

Arts & Business always has evolved, and always will evolve, to develop and encourage new collaborations between the arts and commerce, but the powerful partnerships between culture and commerce are changing radically. Culture has changed: it is more populist and more fluid. Consumer brands commonly use culture in credible ways. The digital age is changing both cultural creation and consumption.

Developing understanding

Arts & Business is not immune to criticism. Like any national body we have to make sure our clients, our users, are not only clear about what we are doing, but understand why we are doing it and feel the benefit of this work. Far from being defensive, we are open to critical advice from all corners. We have always striven to have an open, honest conversation with our cultural partners and we know that what we are delivering for the arts needs to have a real impact. For that reason, we have just undertaken a comprehensive consultation with the arts sector. We have held one-on-one conversations around the country and our web survey received over 3,000 responses. We seem to be evolving in the right manner, as the online response votes were overwhelmingly in favour of our proposals, but some important points were raised in the online comments and one-to-one conversations, and we need to take those into consideration as well.

A new agenda

We will announce a new programme of work towards the end of January next year. In some instances it is still business as usual: we are working with City University on research into mid-level cultural giving outside London, bringing together arts fundraisers to discuss the benefit levels on donations and continue to give free fundraising advice and place business people on the boards of arts organisations. We are working with other cultural partners to develop Public Giving for the Private Good and build the number of philanthropic gifts reaching the arts. Culture House, an initiative that helps philanthropists gain a more informed approach to their cultural giving by offering advice and high-level networking at cultural events with key people from across the arts, moves into its next stage of growth. We are also launching a medal, for our President HRH The Prince of Wales to recognise arts philanthropy. We continue to support the Government’s agenda, for example, working with the London Organising Committee of the Olympic Games to help the arts engage with the Cultural Olympiad and its logo usage; discussing the recently announced free access to the arts with the DCMS and Arts Council England; maintaining the campaign to the Treasury for tax relief on lifetime giving.

Our research and advocacy monitors annual private investment in culture and recently we conducted a ‘credit crunch’ snapshot to gauge business attitudes to arts sponsorship in the current economic climate. New research will highlight how arts-based activities can impact on businesses’ creativity and communication, and help with organisational change. We will focus on the changing nature of arts/business partnerships, why brands are engaging with culture and what they can learn about technology, marketing and co-production. We will grow our network and membership offer, create more forums for debate and continue with our National Awards programme. This year we have launched the Lloyds Innovation Award to celebrate the very best arts/business partnerships over the last 30 years.

Turbulent times

But I cannot finish without reflecting on what is happening in the financial markets. Artist Damien Hirst said, on his record breaking auction at Sotheby’s, “people would rather put their money into butterflies than banks” as the global markets crashed. No one has seen financial volatility like this before. Great institutions have vanished overnight and thousands of people have lost their jobs. But Hirst’s butterfly paintings are not more important than banks. The very foundations of capitalism are being both threatened and questioned. Governments are intervening in ways never before dreamt of. Wealth generation is not under question, but the means by which some acquire wealth certainly is. When, eventually, the turmoil subsides, the institutions left standing and the new companies being formed will need to rethink their relationship to society and their contribution to the wider community, including the arts. The cultural and commercial worlds will, in many cases, need to rebuild relationships and forge new friendships, but institutions like Lehman and HBOS should not be forgotten by the thousands of beneficiaries of their support through the years.

As we stand in awe and amazement at our world events, we should remember that we need both butterflies and banks, in other words, both arts and business. Mankind can neither live on bread, nor even banks, alone.