Research by the Melbourne Business School released this week has found current philanthropic relationships in the arts tend to be at the more traditional end of the philanthropic spectrum of giving.
Arts Philanthropy: Towards a Better Practice Model by Liz Gillies and Joanna Minkiwiecz of the Melbourne Business School, Melbourne University is based on interviews with 11 Trusts and Foundations from Australia, the USA and the UK plus an online questionnaire to Australian arts organisations and Trusts and Foundations.
The researchers found arts organisations tended to rely on grant applications for limited pools of funds. ‘This approach to grant making contributes to both philanthropists and arts organisations experiencing frustration in regard to the lack of philanthropic funds available and the allocation mechanism used to distribute these funds.’
The researchers identified a lack of ‘strategic alignment’ between the arts and philanthropic sectors. They said rectifying this misalignment will require new models of engagement, more collaborative grant making platforms and measurable benefit to the arts and the broader community.
Key findings from the research are:
- Arts organisations show a clear preference for longer and more strategic funding relationships but Philanthropic Trusts and Foundations prefer shorter, one-off grants.
- Philanthropic Trusts and Foundations focus on leveraging the arts as a tool for community engagement. Arts organisations take a more siloed approach, with a strong preference for projects that support the ‘nuts and bolts’ of their organisations.
- Philanthropic Trusts and Foundations want to foster fostering innovation and support collaboration but arts organisations are most in need of funds for general operating costs, programs and income development.
- Philanthropic Trusts and Foundations say they see technology as a key innovation platform for the arts but they don’t necessarily give preference to applications involving electronic media, online services or computer systems and equipment.
- In line with a more traditional approach to grant making, evaluation of arts projects tends towards a focus on acquittal – getting the program up or producing the work. Philanthropists want deeper insights such as how the community has been affected or in what way the work produced artistic value. The researchers acknowledged it was difficult to come up with a ‘a strategic solution’ to this difference.
The researchers said international best practice suggested a more ‘catalytic’ philanthropic approach offers considerable potential for building new platforms of support for the arts in Australia. To achieve this, arts and philanthropic organisations would need to develop a ‘theory of change’, be involved in multi-sector collaborations and assess collective impacts.
Philanthropists want to see the arts making a difference. ‘In general in our granting we are less interested in localised art programs than we are in that whole opportunity to really develop something that creates capacity in the community,’ said one.
The researchers recommended arts organisations should focus on developing stronger relationships with Trusts and Foundations prior to submitting applications with a view to clarifying and aligning with granting guidelines.
As one arts organisation put it, ‘We are thinking a lot more strategically …if you have a good idea and you want to engage – don’t send a letter, don’t send another copy of your annual report…make a personal approach and talk to me…and come with – this is what the money will buy you, these are the results, this is what it is going to look like, this is how we have thought through how we are going to take the money and do good with it.’
In addition arts organisations could do more to support the development of arts expertise within Trusts and Foundations, giving Foundation staff a better chance to understand what they do. This is a signal not only for free tickets but for rehearsal access, engagement with performers and genuine discussion about the creative process.
Arts organisations need to help potential funders learn the context of what they do. Don’t just tell the grant giver what you want to do in the project for which you are seeking funding; explain how it relates to current practice, extends what you have done before and sits in the context of emergent practice.
The researchers said philanthropists could also improve their operations through:
- Clarification of grant guidelines
- A greater focus on innovative and collaborative projects
- Clarification of the process by which grant applications are judged and better feedback on unsuccessful applications.
- Supporting the development of specific and relevant expertise by program officers and other foundation staff
- Seeking to maintain a consistent focus and direction
- Ensuring consistent policy and communications
- Communicating clearly, consistently and accessibly
- Providing timely feedback to grantees.
