Reality check for the visual arts

Most visual arts organisations are under-capitalised and have reserves that are too small to support investment and growth or to protect the organisation in times of crisis, according to a new report commissioned by Arts Council England and the Turning Point network, a national network of regional visual arts groups made up of individual artists, independents, and organisations who share a stake in the future development of the visual arts sector. In her investigation of ‘Business Models for the Visual Arts’, author Susan Royce also found that visual arts organisations’ assets, including staff, buildings, brand and intellectual property, are often not fully exploited. She also suggested that the absence of ticket income means that increased activity normally results in higher costs, because potential income from visitors, such as secondary spend from catering and retailing, is rarely well exploited. She concluded that certain aspects of the culture of the visual arts world, especially its general “discomfort with business and the economy”, the practical implications of free entry and funders’ tolerance of underperformance, are all weakening business models in the visual arts. Better audience focus, business skills development, smarter support operations and stronger financial and funding strategies would all help them to improve their sustainability.