Cost of living enquiry to explore impact on fundraising

Arts Fundraising & Philanthropy (AF&P) is launching a series of enquiries into challenges facing arts, culture and heritage fundraising.

The series will run over the next two years, with each enquiry made up of eight fundraisers from arts, culture and heritage organisations across the UK, who will work with AF&P with a view to informing future policy and research.

The organisation is currently recruiting for the second enquiry, which will explore how arts organisations, their audiences, donors and funders are being affected by the rising cost of living.

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The enquiry will aim to establish how best to support organisations to navigate the crisis, identify practical steps different organisations are taking, pinpoint useful approaches that can be copied from other sectors and analyse the implications of the crisis on fundraising strategies.

“The difficulty in this particular crisis is that there is no end point or obvious route map,” said Michelle Wright, CEO of Cause4 and Programme Director of Arts Fundraising & Philanthropy.

“Being hit by another global crisis whilst we are still in the long tail [of Covid] is very concerning for future donations.”

According to research by the Charities Aid Foundation, the cost of living crisis has prompted one in seven (14%) people to say they will cut back on charitable donations.

The latest Bank of England forecast predicts inflation peaking at 13.1% in the fourth quarter of 2021, largely driven by the steep rise in energy prices. Inflation hikes mean donations are not worth as much in real terms. Pro Bono Economics estimated a £20 donation in 2021 will be worth £17.60 in 2024.

Wright told ArtsProfessional that the continued war in Ukraine, globally high inflation and the continued recovery from Covid means there are “tough times ahead” for arts fundraising.

“For a small gallery, for example, that is facing a three-fold increase in utility bills they have limited options. Many grants cannot be used to pay for utilities, so the shortfall has to be found via cuts in expenditure, staffing or activities or in raising greater sums in earned income.”

“Much of the latter relies on ensuring higher visitor numbers or spend per visitor – herein lies the problem, as we know that audience behaviour is more cautious post-Covid and that cost of living concerns will mean that consumption of culture and other leisure expenditure is likely to drop.”

“We literally have a vicious circle.”

Wright said the six month long cost of living enquiry will look at how the sector can target its fundraising successfully, reduce costs where possible and share intelligence and information to help “ride out the storm”.

Participants will hone their response to betwenn six and eight recommendations for Arts Council England and other funders and policymakers to consider.

A short publication will be produced, outlining these policy ideas and suggestions, with all participants credited as co-authors. 

Open call

AF&P is “looking to create a team that represents a wide and diverse range of views, opinions and experiences”.

Fundraisers working in the sector are invited to apply. Participants must be working in-house in an arts, culture or heritage fundraising team and must “bring a sense of curiosity to the project,” but are not required to be experts.

Those selected will be expected to attend three online meetings and will be paid an honorarium of £500. 

“The enquiry model brings together fundraisers of different levels of experience, from different scales of organisation to develop ideas that they feel can make a difference to the sector,” Wright explained.

In the wake of pandemic restrictions that prevented many people from networking and attending conferences, events and trainings, the enquiry will also aim to stimulate potential new networks between different areas of the arts, culture and heritage sector.

“At present, people working in organisations want practical solutions that can be implemented relatively easily,” Wright said.

“The enquiry will seek to be ambitious in the ideas it puts forward but not a talking shop. If it does its job, the recommendations put forward will be able to be rolled out sector-wide with limited funding needed.”

Applications to participate in the cost of living enquiry are open until 30 September.