{"id":2914,"date":"2011-07-05T15:28:15","date_gmt":"2011-07-05T15:28:15","guid":{"rendered":"http:\/\/ihbconline.co.uk\/newsachive\/?p=2914"},"modified":"2011-07-05T15:28:15","modified_gmt":"2011-07-05T15:28:15","slug":"55m-help-for-englands-culture-endowments","status":"publish","type":"post","link":"https:\/\/newsblogs.ihbc.org.uk\/?p=2914","title":{"rendered":"\u00a355m help for England’s culture endowments"},"content":{"rendered":"


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A new \u00a355 million scheme, chaired by former Cabinet Minister Michael Portillo, will help arts and heritage organisations secure their future financial stability by building endowment funds, Culture Secretary Jeremy Hunt has announced.<\/span><\/p>\n

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Organisations will be able to bid for grants of up to \u00a35 million to support endowment fundraising from the Endowment Fund, which will be available to match funds raised from private donors.\u00a0 Bids will be reviewed by an independent advisory panel chaired by Michael Portillo. Around 50 organisations are expected to benefit from the grants which will start at \u00a3500,000.<\/p>\n

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The \u00a355 million is part of a \u00a3100 million Government, Arts Council England and Heritage Lottery Fund pledge to support philanthropy, and will go towards building endowments on a challenge-fund basis.<\/p>\n

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Secretary of State for Culture, Olympics, Media and Sport Jeremy Hunt said: \u201cIt took the Met in New York over 100 years to build up their \u00a32bn endowment. I want our endowments century to start today.\u00a0 World class cultural organisations should have world class financial resilience. ?Michael Portillo is passionate about culture and will bring real wisdom to a process that will start a much needed change in our approach to cultural fundraising.\u201d<\/p>\n

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Alan Davey, Chief Executive of Arts Council England, said: \u201cToday\u2019s announcement by the Secretary of State is another important step in helping to make arts organisations more sustainable in the long term \u2013 one of the key objectives of Achieving great art for everyone, our ten year framework for the arts.\u00a0\u00a0Arts and heritage endowments will provide a range of opportunities for arts and cultural organisations to build their skills and capacity to fundraise, to match-fund using new ideas and to invest for their long-term health and creativity.\u201d<\/p>\n

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In December 2010 Jeremy Hunt announced an \u00a380 million fund to help increase philanthropy. This was made up of \u00a350 million from Arts Council England and \u00a330 million from DCMS.<\/p>\n

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This is boosted by an additional \u00a320 million Heritage Lottery Fund (HLF) contribution, taking the total to \u00a3100 million.\u00a0\u00a0\u00a35 million of the HLF money will go towards helping smaller cultural and heritage organisations build their financial resilience and improve their fundraising abilities, with the remainder forming part of the \u00a355 million available for endowments.<\/p>\n

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To apply for these new grants, organisations will also have to raise money from private philanthropic sources. Different leverage ratios will be required for grants of different sizes, but these should on average raise \u00a32 from private sources for every \u00a31 of public funding.\u00a0 So \u00a355 million in public funding will unlock \u00a3110 million from private support, possibly more.<\/p>\n

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Arts Council England this week announced the detail of how their funding for philanthropy will be allocated.\u00a0 A \u00a340 million philanthropy programme, Catalyst Arts, is designed to help arts organisations raise money through philanthropy.\u00a0\u00a0 An additional \u00a310 million from the Arts Council will form part of the \u00a355 million available for endowments.<\/p>\n

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Endowments are typically large funds held in perpetuity by organisations, helping to provide long term financial security by contributing to annual running costs through the interest earned by the fund.\u00a0 They are often used in the US by large cultural organisation but are less common in the UK.<\/p>\n

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The announcement is part of a package of measures put in place by the Government designed to increase philanthropy for arts and cultural organisations.\u00a0 Other measures include:<\/p>\n