Philip Spedding Head of Individual Giving and International IMC 31st March 2011

Philip SpeddingHead of Individual Giving and International

IMC31st March 2011

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Arts & Business – Business Network

• Our national business membership provides access to pioneering research, international networks, advocacy and opportunities to share best practise.

• More than 500 UK-based companies benefit from being part of our Business Network, including BP, HSBC, Sky Arts, Deutsche Bank, Toshiba, PriceWaterhouseCoopers, Prudential, Eversheds and Lloyds TSB Commercial Finance.

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Arts & Business – Arts Network

• We work with 1200 arts organisations annually, through our arts membership

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Arts & Business – International Network

• We have links to 24 international territories including China, Abu Dhabi, Canada, Russia, Norway, Hungary, USA, Brazil and South Africa.

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Arts & Business

Presentation title here (Arial 12)

What is so special about

your organisation

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Arts & Business


Where’s the money?

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Arts & Business


Public vs Private

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Funding - What kinds are there?

• Public• Government

• Local Authority

• Private• Sponsorship

• Grants

• Philanthropic Donations

• Commercial• Trading

• Hires

• Merchandising

• Services

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Funding - Public funding

•Likely to be static at best•Reduction more likely

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Building SecurityHow does Mixed Funding help?

• No single reliance on any one source or decision of one individual.

• Wider involvement from a range of individuals, trusts or companies

• A sense of “shared ownership and endeavour”

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Building Security – Mechanics

• Legal structure• Build your own or work with another organisation

• Trustees / Friends / Ambassadors

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Arts & Business


Public vs Private

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History

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History

“Can I have some more, please Sir?”

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Arts & Business


Sponsorship

Donations

• The payment to an arts organisation by a business in exchange for agreed benefits such as promotion of the business’ name, its products or services. Sponsorship is often a part of a business’ general promotional expenditure.

17Introduction to Fundraising

Definition of Arts Sponsorship

• The payment to an arts organisation by a business or an individual in expectation of nothing in return


Definition of Arts Donation

Everyone wants something in return.


But...

It is about them

It is not about you.


Fundraising...

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Arts & Business


• Corporate• Foundation• Individual

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Traditional Sponsorship – M&B


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Content Sponsorship – Classic FM


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Connections – Morgan Stanley


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International Sponsorship – CUP


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International Sponsorship - Finnair


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International Sponsorship – Rolls Royce


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Arts Based Training – Rolls Royce


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Reputation - BP


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Partnerships


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Arts & Business


The Future

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Gorillas

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Gorillas

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Gorilla & Cadburys

• Sales increased by 9%

• Perception of the brand improved by 20%

• Creative direction “founded upon the notion that all communications should be as effortlessly enjoyable as eating the bar itself.”

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Arts & Business


The Modern Dynamic and The Consumer

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The modern dynamic & the Consumer

Nomura Institute

Four eras of economic activity:

1. Agricultural

2. Industrial

3. Informational

4. Creative

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Daniel Pink A Whole New Mind

"Logical and precise, left-brain thinking gave us the Information Age.

Now comes the Conceptual Age — ruled by artistry, empathy, and emotion.“

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http://www.amazon.com/exec/obidos/tg/detail/-/1573223085/creativitatwork

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The Experience Economy

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Computers

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Shoes

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Circuses

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Cities

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Culture as...

• Entertainment

• Brand

• Location

• Content

• Creativity

• Authenticity

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Key targets


• Customers

• Staff

• Community

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Culture as Entertainment – Eurostar

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Sponsorship with twist - Travelex


The Travelex £10 ticket season

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Sponsorship Plus - V&A & HSBC

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Sponsorship Plus - V&A & HSBC

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http://www.hsbcculturalexchange.com/china_design_now.php

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Hewlett Packard & National Gallery

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Culture as Entertainment

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Culture as Entertainment

Jameson & Halloween - Film

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Secret Cinema

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Secret Cinema

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Culture as Location – Sony Playstation

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Edding

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Edding

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Culture as Brand – V&A

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Culture as Brand – UAE

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Creativity - Youtube

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Puma & Serpentine

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Culture as...

• Entertainment

• Brand

• Location

• Content

• Creativity

• Authenticity

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Culture and Challenges

The best relationships involve:

• Understanding

• Vision

• Creativity

• Measurement

• Openness

• Willingness to share

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Arts & Business



Everyone wants something in return.


Remember...

It is about them

It is not about you.


Fundraising...

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Trusts & Foundations

• 8,800 grant-making trusts and foundations in the UK, giving around £2.7 billlion per year to charities, including the arts.

• Each trust or foundation has been created with a specific remit for their area of giving

• Most Trusts and Foundations are registered charities and derive their income from an endowment which provides tax exempt income to support their grant giving activity.

• Some secure income from company profits or a high profile media appeal, e.g. Comic Relief or Virgin Unite.

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Trusts & Foundations

• Trustees

• Guidelines

• What Trusts support

• What Trusts don’t support

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Approaching Trusts

• Application procedures

• Timescales – Trusts’ funding cycles

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Arts & Business



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HNWI

Presentation title here (Arial 12) 73

HNWI• Assets $1m (av. $4m)• Growth 7.7% annually• Total Wealth by ’12 $59,100,000,000,000• HNWI in UK 495,070 (2.1%)• CLEWI 6%

Caius Cilnius Maecenas

Philanthropists

Andrew Carnegie

Henry Ford John D Rockefeller

John Paul Getty

Philanthropists

François Pinault

Alberto Vilar

John Studzinski

Dame Vivien Duffield

Philanthropists

Guy & Miriam Ullens

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Crowdfunding

• Kickstarter.com

• Project based

• Attracts a different demographic

• Network for Good: Relationships still key

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Arts & Business


How do you get money?

The 7 Steps of Fundraising

• Identify• Research• Plan• Involve• Ask• Conclude• Reciprocate

The 7 8 Steps of FundraisingX• Prepare

Prepare

Feasibility phase:

• Need for money?• Value for money?• When do you need money?

• Internal buy-in? A good board?• Why is your organisation best?• Staff skills?• Potential support?

• Enough resources?

Case for Support

1. A clearly defined need for support

2. The documentation outlining: • Who you are• What you do• Why that is important

• Clear rationale behind giving• The selling document• An information tool, not the “ask”• Something visual to leave behind• Ensures all staff are on message

• What’s yours?

Case for Support

1. Some quotes to engender trust

2. Clear description of your organisation in supporter focused language• Organisation statement• Legal structure• Finances

3. Artistic Programme

4. Funding

5. How people/organisations can engage with you


• Prepare

• Identify

• Research

• Plan

• Involve

• Ask

• Conclude

• Reciprocate

Identify Targets - Individuals

Internal contacts:

• Audience/ event guests• Members• Previous donors/ sponsors• Address Lists (Shop – Box Office)

• Board/ staff contacts

Identify Targets - Individuals

External contacts:

•Existing supporters’ peers•Typical social/ work circles•Profiles in magazines•Keyword searches•Media appearances

• Previous sponsors• Corporate members• Staff contacts (including

volunteers)• Board contacts• Business contacts (suppliers,

contractors etc.)• Audience members

Identify Targets - Companies


• Prepare

• Identify

• Research

• Plan

• Involve

• Ask

• Conclude

• Reciprocate

Research

Individuals

Groups of people

Businesses

Researching Individuals

Information to find…

• Giving history• Wealth / Ability to give• Interests• Family background• Who they know• Link with your

organisationBy…

• Asking peers• Friends / social circle• Media• Research agency

N.B. Usea database

Researching Groups

Information to find…

• Social Circles• Wealth / Ability to give• Interests

By…

• Questionnaires• Focus Groups• Other memberships in area (the market place)

• Go walkabout• Annual Reports• National Memberships:

• Business in the Community members www.BITC.org.uk

• Confederation of British Industry• Institute of Directors

• Local groupings• Chambers of Commerce• Rotary International

• Local Authority

Researching Business


• Internet and Online Resources• Google• Sponsorship News• companygiving.org.uk• Arts & Business website

www.artsandbusiness.org.uk


• What is your project’s USP?• Who are your audience?• What is the business’s target

customer?• Do you have similar brand values?• How does the business promote

itself?


• Prepare

• Identify

• Research

• Plan

• Involve

• Ask

• Conclude

• Reciprocate

Plan

Fundraising plan:

1.Internal input (from who?)2.The need3.Timing4.Resources you need5.Communications/ events6.Budget7.Benefits on offer (cost/ value)8.Target income … triangle of gifts9.Benchmarks

Sponsorship Pricing

•How NOT to do it ...

Cost of staging event (£10,000)

Ticket Sales £6,000

Subsidy £1,500

Donation £500 £8,000

SHORTFALL (£2,000)

Therefore, sponsorship = £2,000

Sponsorship Price Considerations

• Benefits Package• Marketing / PR

Campaign• Audience Profile• Reputation• Unique Selling Points• Relevance to business• Timing

VALUEnot

COST


• Prepare• Identify• Research• Plan

• Involve• Ask• Conclude• Reciprocate

Involve

How/ what will they learn about your work?

• Intentional and unintentional

Involve them further• Active / Passive involvement

Moving from “Involve” to “ask”• Invite to event

• One-to-one meeting with influencer• Phone call

•Who or what is your key influencer?




Ask - Individuals

How are they asked?• Donation box• Letter• Event• One-to-one meeting

The ask needs to be:• Clear• Specific• Immediate• Unambiguous• Easy to follow through with gift

Ask - Companies

- 1 -Prepareproposal

- 2 -Telephone

enquiry- 3 -

Writtenapproach

- 5 -First

meeting

- 4 -Telephonefollow up

Ask – Companies - Proposal

Golden Rules:• Keep it short and to the

point• Answer the question:

• “Why should the organisation partnership with this project?”

• Always keep the initiative


• Interesting title page• The project• Who you are and what

you do• Your audience• Publicity• Benefits to sponsor• Sponsorship fee (plus

VAT)

SELLINGnot

ASKING


SELLINGnot

ASKING

TIPS:

• Short and easy to read

• Scan for arts language

• Test it with a third party

• Samples and leaflets

(keep to minimum)

• Creatively presented

- stand out from the crowd!

The Meeting

•PREPARE• Do your homework -

know the company• Prepare your position

•EXPLORE• Ask questions &

listen to the answers• Make links

•PROPOSE• Identify common ground• If giving concessions lead

with theirs, not yours

•AGREE• Know when to agree &

close the deal• Follow up in writing

Dealing with “No”

• Understand why• Invite contact to a

cultivation event • Try again in 6, 9 or 12

months• Approach more than one

prospect at a time




Conclude

Letters to individuals:

• Thanks for donation / pledge• Reiterate agreement (dates / amounts)• Tie in to upcoming events• Link to outcomes• Endorse reasons for giving

Beware of cognitive dissonance

Public thanks

• Print (own / external)• Speech• Events

Reciprocate

• Make them part of the family• Invite to lunch/ exclusive events• Good news / Bad news• Benefits• Appropriate to commitment


• Prepare

• Identify

• Research

• Plan

• Involve

• Ask

• Conclude

• Reciprocate

“I’m sure I have been a ‘Friend’ or a ‘Patron’ along

the way and have followed the usual steps in

giving more and getting more involved - being

brought closer in - but this seemed a natural

development and I didn’t feel imposed upon at any

point...

“…Sometimes I think this was

achieved through professionalism -

sometimes exactly the opposite -

sometimes the staff seem quite

amateur...”

“… but charming and well-meaning and passionate and that gets the same result”

“… but charming and well-meaning and passionate and that gets the same result”

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Culture as Authenticity

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Eyebrows

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Eyebrows

Contact Us:

Web www.artsandbusiness.org.ukEmail philip.spedding@

artsandbusiness.org.uk

Founded 1976

Today• 1,300 arts members• 600 business members• Offices across the UK

Turnover: £7m

Royal Opera House Almeida Theatre

Punchdrunk Quicksilver

Royal Opera House Almeida Theatre

Punchdrunk Quicksilver

31%

42%

27%

SalesState, Box Office and Giving

27%

54%

19%

Sales

71%

28%1%

Sales

89%

11%

Sales

£90m £3.7m

£353k£817k

Documents

Philip Spedding Head of Individual Giving and International IMC 31st March 2011