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: þ • Arts-focussed? • A Registered Charity or Community Interest þ Company? þ • Establishing a track record in fundraising? ý • A museum or a library? ý • A beneficiary of Catalyst: Endowment or Capacity Building & Match Funding? 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 Best • Charity / Charitable Incorporated Organisation • Community Interest Company • Company limited by guarantee • Company limited by shares • Sole Trader • Government body

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 over 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 organisation’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 • 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 of 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 http://www.tax.org.uk/gift-aid https://www.gov.uk/charities-and-tax/overview https://www.gov.uk/claim-gift-aid/overview

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 only 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 70% of grant in form of Programme supports • • matched funding, development and risk- only paid upon taking confirmation of other Expected outcome is a • fundraised income step-change in Project activity must philanthropic giving in • build upon current arts & culture fundraising activity

Breakdown of Fundraising Income Profile for NPOs 2013/14 National NPOs average South East NPOs average fundraising income profile fundraising income profile 9% (12% of overall income) of overall income) Business Business Sponsorship Sponsorship 16% 16% Individual Individual Donations Donations 47% 48% Trusts & Trusts & Foundation Foundations s 36% 37%

Breakdown of Fundraising Income Profile for NPOs 2013/14 East NPOs average London NPOs (excl. nationals) fundraising income profile average fundraising income (11.7% of overall income) profile 14.6% of overall income) Business Sponsorship 7% Business Sponsorship 17% Individual Individual Donations Donations 36% 44% Trusts & Trusts & Foundations Foundations 39% 57%