Catalyst: Evolve Briefing Session Outline for the Session 1.30pm - - PowerPoint PPT Presentation

Catalyst: Evolve

Briefing Session

Outline for the Session

1.30pm Welcome and Introductions – Amanda Rigali, Arts Fundraising & Philanthropy 1.35pm Arts Council England introduction – Anna Mandlik, Senior Manager, London 1.45pm Catalyst in Practice – Kate White, National Centre for Circus Arts 2.15pm Catalyst: Evolve – Is it for You? 3.15pm BREAK 3.45pm Preparing a Strong Proposal 5.00pm END

Catalyst: Evolve Aims and Outcomes

A lottery funding programme to enable more private giving to arts and culture. It will support a step-change within organisations that have recently begun to fundraise. It will support organisations through:

• Offering match funding to incentivise new

philanthropic giving

• Investing in longer-term capacity-building activity

Download and read the Guidance http://www.artscouncil.org.uk/funding/apply-funding/ funding-programmes/catalyst-arts/catalyst-evolve/

How Does it Build upon Learning from the First Catalyst Programme?

Evaluation of First Catalyst Programme carried out by Bop Consulting. Report here: http://www.artscouncil.org.uk/advice-and-guidance/ browse-advice-and-guidance/catalyst-evaluation-year-two. Key recommendations on future programme delivery have been acted upon:

• Longer timescales (Evolve now spans three years)
• Clearer communication on process (Workshops)
• Greater flexibility on match funding (business sponsorship included in

Evolve)

• Concentrate funds on organisational resilience (up to 30% of funded

activity in Evolve)

• Facilitate networking and peer-to-peer learning (Arts Fundraising &

Philanthropy Networks)

Catalyst: Evolve – Is it for You?

Applicant Checklist

Are you from an organisation which is:

• Arts-focussed?
• A Registered Charity or Community Interest

Company?

• Establishing a track record in fundraising?
• A museum or a library?
• A beneficiary of Catalyst: Endowment or Capacity

Building & Match Funding?

þ þ þ ý ý

Beneficiaries of Catalyst Tier 3: Building Fundraising Capacity are eligible to apply for Evolve. Catalyst: Evolve Frequently Asked Questions: http://www.artscouncil.org.uk/ funding/apply-funding/funding-programmes/catalyst-arts/catalyst-arts- information-funding-recipients/

Legal Entities & Fundraising

• Charity / Charitable

Incorporated Organisation

• Community Interest Company
• Company limited by

guarantee

• Company limited by shares
• Sole Trader
• Government body

Best

Partnerships

¡ Partnerships of organisations can apply ¡ All must be Charities or Community Interest Companies ¡ Partnership Agreement must be submitted with application – ACE guidance here: http://www.artscouncil.org.uk/ funding/information-funded-organisations/guidance- partnership-agreements/ ¡ Partnerships that are led by London-based organisations will form part of the calculation of investment in London from this fund ¡ Partnerships which include, but are not led by London- based organisations, will not form part of the calculation of spend in London as long as the substantive benefit and activity is outside London

Does your Organisation have an Emerging Track Record in Fundraising?

Fundraising is the organised activity of soliciting and gathering voluntary contributions of money or other resources for a non-commercial cause by requesting donations from individuals, businesses or charitable foundations.

Has your Organisation Engaged in Any of the Following Fundraising Activity

• ver the Past Two Years?
• Individual Donors – from ‘small change in

buckets’ through to regular philanthropic donations, crowdfunding & legacies

• Trusts & Foundations – private charitable

institutions

• Businesses – Corporate Philanthropy, also

including Corporate Sponsorship

Catalyst: Evolve – What can you apply for?

Funds Available

£17.5 million available, c. 150 awards to be made. Between £75,000 and £150,000 per award. 70-80% of funding will be spent outside London.

Timeline

Online application form will open on Thursday 14 January 2016. Applications must be submitted by 12.00 (midday) on Friday 19 February 2016. All funded activities must be completed by the Programme end date of 31 August 2019.

Organisational Development

Can account for up to 30% of total grant requested.

Activities could include:

• Training and professional development for board members,

staff and volunteers

• Investment in systems such as appropriate donor/patron

database

• Establishing new donation collection mechanisms including

use of digital and technology

• Investing in fundraising capacity
• Prospect research
• Developing new appeals and campaigns

Matched Funding

Must account for no less than 70% of grant requested. ACE will match fund at a ratio of 1:1. Catalyst funding can be matched to new funds raised via any of these strands:

• Individuals (particularly incentivising low level giving)
• Trusts & Foundations
• Businesses, including sponsorship

Earned income, income from other public funders, in-kind support, Gift Aid, gifts of shares and income from universities is not eligible as suitable matched income.

Spending the Money

Applicants will be expected to outline in their application how money raised through this project (both fundraised income and match funding from ACE) will be spent. This can be allocated at the

• rganisation’s discretion. It does not need to be

allocated to additional artistic activity. Applicants may want to consider how money raised through this project could be put towards sustaining fundraising capacity once the Catalyst project has come to an end.

Donations & Taxes

• Philanthropic income is usually defined as a ‘gift’ – so it is

not liable for tax

• ‘Goods or services’ in return for money are liable for tax

(VAT). A ‘good or service’ can be anything which would have a market value (ie. someone else would pay to have it)

• Organisations must be clear when they are asking for

philanthropic gifts (emotional benefit), and when they are asking for money in exchange for goods/services (tangible benefit)

• Friends/Members Schemes can be a mixture of both

philanthropic giving and tangible benefits

• Corporate sponsorship is VAT-able – a tangible benefit

Gift Aid

http://www.tax.org.uk/gift-aid https://www.gov.uk/charities-and-tax/overview https://www.gov.uk/claim-gift-aid/overview

• Open only to Registered Charities – but they must make the

claim

• Claim back the basic rate of tax – so charities receive an

additional 25p on top of every £1 donated

• Higher rate tax payers are entitled to reclaim the remainder
• f tax relief (between higher and basic rate) themselves.

E.g. they donate £100, charity claims £25 Gift Aid, HR taxpayer can then personally claim back £25 (or give this to charity, meaning a total of £150 to charity for £100 donation)

• Needs donor’s name, address, postcode & declaration

Example

If you are applying for a £100,000 grant: Up to £30,000 of the grant can be for organisational development. At least £70,000 of the grant must be for activity which will be matched on a 1:1 basis with new fundraised income (secured before 31 August 2019). So, there must be expected additional income into the project of at least £70,000 from new fundraised income. This gives a total project budget of at least £170,000.

Ensure everyone is a Fundraiser

Organisations should be aiming towards an increased responsibility for fundraising being shared across the organisation (volunteers, staff and Trustees) during the lifetime of the project. https://www.gov.uk/government/uploads/ system/uploads/attachment_data/file/ 455737/cc20.pdf

Catalyst: Evolve – Preparing a Strong Proposal

Key Elements of Application

Guidance contains information on the application structure:

• Meeting the Brief – 50% scoring
• Management of Activity – 25% scoring
• Financial Viability – 25% scoring

Some of the Mandatory Attachments:

• Fundraising Strategy
• Budget template (NB. matched funding portion of grant will
• nly be paid when fundraised income is secured & evidenced –

so stagger grant payments across key fundraising milestones)

• Statement of Support from Trustees

Balancing Risk in your Proposal

• Programme supports

development and risk- taking

• Expected outcome is a

step-change in philanthropic giving in arts & culture

• 70% of grant in form of

matched funding,

• nly paid upon

confirmation of other fundraised income

• Project activity must

build upon current fundraising activity

Breakdown of Fundraising Income Profile for NPOs 2013/14

Business Sponsorship 16% Trusts & Foundations 36% Individual Donations 48%

National NPOs average fundraising income profile (12% of overall income) South East NPOs average fundraising income profile 9%

• f overall income)

Business Sponsorship 16% Trusts & Foundation s 37% Individual Donations 47%

Breakdown of Fundraising Income Profile for NPOs 2013/14

East NPOs average fundraising income profile (11.7% of overall income) London NPOs (excl. nationals) average fundraising income profile 14.6% of overall income)

Business Sponsorship 7% Trusts & Foundations 57% Individual Donations 36%

Business Sponsorship 17% Trusts & Foundations 39% Individual Donations 44%

Refreshing Your Case for Support

• 1. Why should people support you – what is your USP?
• 2. Why should they feel passionate about you & your work?
• 3. What evidence can you draw upon to substantiate the

need/ context for your work?

• 4. What exactly will their support contribute to?
• a. Outputs: what activities will take place
• b. Outcomes: what impact will it have?
• 5. What is your overall income generation plan?
• 6. How will you manage the money you are given in the

best interest of beneficiaries?

Arts/ cultural organisations should aim to have well- evidenced Cases for Support which demonstrate their success in meeting

• utcomes against a number
• f agendas.

Broadening Your Case for Support

CULTURE

Inspiring new ideas and fresh insights Identity and collective memory The empatheti c citizen

EDUCATION

Higher Education Primary and Secondar y Education Continuin g and lifelong learning

SOCIETY

Health Wellbeing & entertainmen t Engagemen t and equality of access Creative industries and employment Cultural exports Regional regeneratio n and tourism

ECONOMY Intrinsic value Instrumental value

Some Pointers for a Fundraising Strategy

• Evidence-based
• Internal – data from previous fundraising activity
• External – market research
• Working towards a step change in fundraising
• More – increased, and different, fundraising activity
• Better – improving processes and success rates
• Deeper – strengthening existing relationships
• Resources
• Staff
• Financial
• Timescales for different activities linked with income and

expenditure

• Legacy plans - sustainability

Questions to Consider: Individual Giving

• What is your current rate of success with individual giving
• ver the past 2 years? (% of donations against asks;

average size of gift; regular giving vs. one-off donations)

• How many supporters are you developing a relationship

with, and what do you know about them?

• How do you cultivate potential new supporters?
• How effectively and passionately do you communicate

your charitable cause?

• How often, and in what ways, do you ask for donations,

and who makes the ask?

• How do you thank donors bring them into your
• rganisation?

Digital Giving

• Digital giving is not a ‘quick fix’!
• Consumer trends: CAF Survey shows that 15% of

donors used online giving over last year, and 11% ‘text’ giving. 55% give cash

• Individuals who give via social media are still

individual donors - they need to be cultivated via regular communications

• ‘Offline’ rules apply ‘online’ – people will not give

to a cause which no one else seems to want to support

Matthew Bowcock’s Report on Digital Giving in the Arts: https:// www.gov.uk/government/uploads/system/uploads/ attachment_data/file/78048/Digital_Giving_in_the_ArtsV2.pdf

Questions to Consider: Trusts & Foundations

• What is your track record of success with trusts &

foundations over the past two years (% of successful applications / % of funding applied for)?

• What range of trusts & foundations have you

applied to? How did you find them?

• What are the specific aspects of your activity

which you have identified as offering opportunities for funding by trusts & foundations?

• How do you cultivate relationships with trustees

and grant officers in trusts & foundations?

Questions to Consider: Businesses

• Less likely to be philanthropic income and more likely to

be VAT-able provision of goods & services through sponsorship/membership.

• What is your track record of success with business

partnerships over the past two years (kinds of relationships, actual income secured)?

• How do you develop relationships with (local) businesses

and use your networks to identify potential new relationships?

• What is your offer to businesses?
• (Likely to be longer-term cultivation; relationships can

take at least a year to build)

Staff Resources

• Ensure your strategy is discussed, agreed and led by

trustees

• Ensure your strategy is discussed and engaged with by all

staff and volunteers – don’t simply assume that ‘new staff’ will come in and carry out fundraising discretely

• Ensure you have legacy plans in place to continue

resourcing fundraising after the life of the project

• Agree a target ‘invest to earn’ ratio, both in general and

for each aspect of your fundraising activity

• Remember than this ratio may range from ‘investing £100, earning

£0’ in year 1, through to ‘investing £100, earning £200’ in year 3

• The ‘invest to earn’ ratio will vary depending on the nature of

fundraising activity – could be much higher for trusts & foundations than for individual donors

Further Questions?

Download and read the Guidance: http:// www.artscouncil.org.uk/funding/apply-funding/funding- programmes/catalyst-arts/catalyst-evolve/ Read the FAQs, which will be updated: http:// www.artscouncil.org.uk/funding/apply-funding/funding- programmes/catalyst-arts/catalyst-arts-information- funding-recipients/ NPOs – speak to your Relationship Manager Other arts organisations – contact the Arts Council

• Phone: 0845 300 6200
• Email: enquiries@artscouncil.org.uk

Some Useful Online Research

• Charities Aid Foundation overview of charitable giving – UK Giving 2014 - https://

www.cafonline.org/docs/default-source/about-us-publications/caf-ukgiving2014

• Free website for funders research: http://www.fundingcentral.org.uk/default.aspx
• Audience Agency Donor Finder Research: link between members and donors:

http://artsfundraising.org.uk/donor-finder/

• Ethical Fundraising Policy Template:

http://artsfundraising.org.uk/governance-supporting-resources/

• Arts Council England Annual Survey of NPOs &MPMs: http://www.artscouncil.org.uk/advice-

and-guidance/browse-advice-and-guidance/national-portfolio-organisations-and-major- partner-museums-key-data-201314-annual-submission

• DCMS Survey of Charitable Giving Indicators:

https://www.gov.uk/government/statistics/charitable-giving-indicators-201314

• Taking Part Survey:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/438442/ Taking_Part_2014_15_Quarter_4_Report.pdf

• Arts Council England Research Gateway:

http://www.artscouncil.org.uk/what-we-do/research-and-data/research-gateway/

Arts Fundraising & Philanthropy Resources

• Visit our website to find out more about the

Programme and to join our e-mailing list: www.artsfundraising.co.uk

• Training opportunities across the country:

http://artsfundraising.org.uk/training/

• Read blogs written by Programme staff, Fellows,

and trainers: http://artsfundraising.org.uk/opinion-page/

• CultureHive digital resources extended to

include arts fundraising: http:// culturehive.co.uk

• Online Fundraising Workshops:

http://www.a-m-a.co.uk/page.aspx?id=253

Amanda Rigali Director of Programmes Cause4 Amanda.rigali@cause4.co. uk 0207 247 1430 @AmandaCause4