Matched crowdfunding schemes – where public, institutional or corporate money is combined with donations raised through an online platform – can help leverage additional funds, according to the findings of a pilot study for arts and heritage projects.
Nesta, the Department for Digital, Culture, Media and Sport, the Heritage Lottery Fund (HLF) and Arts Council England (ACE) launched the pilot earlier this year to address a lack of research into the impact of matched crowdfunding projects.
The pilot provided funding of about £250,000 to 59 projects through two streams, one provided by the arts council and aimed at artists and art organisations, and the other provided by HLF and available to heritage organisations.
One project, run by Dundee Heritage Trust, raised £41,795 for the restoration of the RRS Discovery through a £10,000 HLF grant and £31,795 in crowdfunded donations.
In total, the projects raised £405,941 through a crowd of 4,970 backers, on top of the £251,500 made available from ACE and HLF. A report into the study, published by Nesta last week, concludes that matched funding makes projects more likely to succeed and can help leverage additional funds and larger donations.
It also potentially brings new support to arts and heritage organisations, with 86% of donors having never supported the organisation before.
As well as offering financial benefits, 85% of the projects reported receiving non-financial contributions such as voluntary work offers and campaign design advice. The study also found that crowdfunding projects have a positive impact on organisations’ advocacy and communication skills.
However, the Nesta report found that crowdfunding projects can be dominated by a few donors, with 1% of backers giving 24% of the total crowd contribution to the 59 projects.
It also identifies several challenges, including generating enough uptake of the funds among art and heritage projects.
The report recommends that organisations try matched crowdfunding as part of a wider funding strategy.
The authors write: “While matched crowdfunding presents challenges to how funders currently operate, there are clear benefits that should prompt funders to consider how crowdfunding relates to their current practice.”
Links
The Nesta report on matched crowdfunding
Museum Practice on crowdfunding
Nesta, the Department for Digital, Culture, Media and Sport, the Heritage Lottery Fund (HLF) and Arts Council England (ACE) launched the pilot earlier this year to address a lack of research into the impact of matched crowdfunding projects.
The pilot provided funding of about £250,000 to 59 projects through two streams, one provided by the arts council and aimed at artists and art organisations, and the other provided by HLF and available to heritage organisations.
One project, run by Dundee Heritage Trust, raised £41,795 for the restoration of the RRS Discovery through a £10,000 HLF grant and £31,795 in crowdfunded donations.
In total, the projects raised £405,941 through a crowd of 4,970 backers, on top of the £251,500 made available from ACE and HLF. A report into the study, published by Nesta last week, concludes that matched funding makes projects more likely to succeed and can help leverage additional funds and larger donations.
It also potentially brings new support to arts and heritage organisations, with 86% of donors having never supported the organisation before.
As well as offering financial benefits, 85% of the projects reported receiving non-financial contributions such as voluntary work offers and campaign design advice. The study also found that crowdfunding projects have a positive impact on organisations’ advocacy and communication skills.
However, the Nesta report found that crowdfunding projects can be dominated by a few donors, with 1% of backers giving 24% of the total crowd contribution to the 59 projects.
It also identifies several challenges, including generating enough uptake of the funds among art and heritage projects.
The report recommends that organisations try matched crowdfunding as part of a wider funding strategy.
The authors write: “While matched crowdfunding presents challenges to how funders currently operate, there are clear benefits that should prompt funders to consider how crowdfunding relates to their current practice.”
Links
The Nesta report on matched crowdfunding
Museum Practice on crowdfunding
