I read an interesting statistic recently. In ACE’s recently published 2008/09 submissions from Regularly Funded Organisations, combined ‘Contributed Income’ (sponsorship, trusts, donations, and lottery revenue partnership funding) fell by over £12.6 million (11%). But this was more than made up for by combined ‘Earned Income’ (ticket sales, workshop fees, merchandising, sale of books and magazines, etc.) which rose by £52.8 million (12%).
If you have read my blogs over the last couple of years, you will know that I hold a particular view of the “recession”; it was patchy, not universal. Its impact ranged from the catastrophic (if you were in house building, car manufacturing, or banking), to the liberating (with interest rates at an all time low, many households were between £100 and £150 a month better off). Public money was drying up, but private/personal money was plentiful.
Reliance on public funding has become an increasingly high risk strategy. I speak from personal experience as the ex-treasurer of an excellent provider of arts education which closed due to withdrawal of its core funding. Other organisations I know well are also starting to think the unthinkable – what if we can’t rely on public funding anymore?
So what is Plan B?
Well, I think public funding will become increasingly scarce, and with the hoops to jump through and numerous forms to complete, it will become harder to maintain.
There has been an interesting debate on LinkedIn to do with factoring as a way of improving cashflow. What caught my eye was a comment that said “payment terms has, and never will, kill a good idea”. I see this as a clarion call to every organisation that has a good idea – if it’s that good, someone will pay for it.
