Cultural funding – getting to

grips with a new era of

sponsorship and cuts
21 January 2011

Georgina Adam

Georgina Adam
 MacGregor report
Endowments report:
http://www.culture.gov.uk/publications/764
2.aspx
• Donors must be assured gifts will be safe
and their wishes fulfilled
• Building endowments is slow (decades not
years) – so good reason to begin now
• US museums far ahead of UK

Georgina Adam
 MacGregor report
• Ease government control on museums
• Remove £500 cap on benefits
• Reward donors better
• Offer matching funding
• Introduce various tax reliefs – for trusts, for
gifts and endowment “douceurs”

Georgina Adam
 Attitudes
Potential donors say:
• Not enough financial incentive
• Complicated system
• Not enough acknowledgement
• Lack of knowledge

Georgina Adam
 Incentives
Simon Weil, tax advisor :
“The Government can’t have it both ways, if
they say private philanthropy will have to
step in then they will have to provide
incentives. We have to explain and
convince HMRC that they won’t
necessarily lose revenue.”

Georgina Adam
 Incentives (2)
Howard Rachofsky, “Tax incentives – would
US support for its museums have
happened without tax breaks – probably.
Would it have been as powerful? Certainly
not.”
“Ultimately people give to people and I have
great admiration for Tate and its
leadership is important, they have
persuasive arguments.”

Georgina Adam
 Simplify
Susan Johnson Christie’s :
“Substantial donor rules (£25,000 or £150m
in 6 years). for the receiving charity, are
clunky and if not respected absolutely the
charity might even lose charitable status.”

Georgina Adam
 Communicate
Stephen Deuchar, Art Fund
“I have been talking to a collector who
transferred a number of works of art to a
US museum, and he was saying how easy
it was, the museum knew all about the tax
aspects.”
Frank Cohen didn’t know that he only got
Gift Aid back on money donation, not art.

Georgina Adam
 Communicate (2)
Paul Thompson, (RCA)
“I met people in the US earning $45,000 a
year and they know everything about what
the tax incentive would be [to giving]. I
don't think people over here are aware of
any benefits.”

Georgina Adam
 Acknowledge
David Roberts , collector
“The institutions have to change their
mindsets. There is not a warm glow of
appreciation, as with US museums.”

Georgina Adam
 Dealing with donors
Attitude to publicity
• What will the donor do? Establish in advance
how comfortable he/she is with media
• Copy approval/quote checks : discuss in
advance, be upfront with journalist
• Target publications – and think outside the box
• Decide how much “off message” you can accept

Georgina Adam
 Dealing with donors (2)

• Do your homework. Is a collection likely to

be for sale down the line?
• Is philanthropy masking a dodgy past?
• Journalists can be suspicious – they want
access but will do their homework too

Georgina Adam
 Sponsors
KISS!
eg Abraaj prize too complicated.
Topical hook: Qatar sponsoring exhibitions
at RA.
Best for sponsors is when name is
integrated into event -ie BP, Unilever
Keep reminding journalists to tell subs and
editors about sponsors

Georgina Adam