The Arts Council England (ACE) has announced an overhaul of its funding to regularly funded organisations (RFO), including the introduction of an application system.
Around 100 organisations are likely to lose funding over the next five years as a result of the change, which will replace the current RFO funding system from April 2012. All 850 existing RFOs can apply for funding under the new system, but new organisations will also be eligible, with decisions made on the basis of strategic priorities.
Other changes to funding include more flexible funding terms and tailor-made funding agreements with individual organisations based on clear criteria and strategic relationships. The new approach will see ACE form two types of relationships with arts organisations: a small proportion of "strategic" organisations and a larger proportion of organisations that are funded on the basis of their programmes of work.
Liz Forgan, chairwoman of ACE, added: “Salami slicing our portfolio of organisations would never have been an appropriate long-term response, regardless of our settlement. We want to build a portfolio where organisations, large, medium and small, are able to prosper as well as survive.”
ACE saw its budget cut from £388m to £349m in October's spending review. The Department for Culture, Media and Sport (DCMS) asked that ACE not cut funding to RFOs by more than 15%.
Maurice Davies, head of policy and communication at the Museums Association, said: "The new system is more transparent and will allow new entrants access to funding. It's far ahead of the way DCMS funds the nationals. But the application process must be fair and support a range of organisations, not just the ones that are fashionable in policy terms."
The launch of the new ACE funding structure coincides with the publication of ACE’s 10-year strategic framework entitled Achieving great art for everyone.
Around 100 organisations are likely to lose funding over the next five years as a result of the change, which will replace the current RFO funding system from April 2012. All 850 existing RFOs can apply for funding under the new system, but new organisations will also be eligible, with decisions made on the basis of strategic priorities.
Other changes to funding include more flexible funding terms and tailor-made funding agreements with individual organisations based on clear criteria and strategic relationships. The new approach will see ACE form two types of relationships with arts organisations: a small proportion of "strategic" organisations and a larger proportion of organisations that are funded on the basis of their programmes of work.
Liz Forgan, chairwoman of ACE, added: “Salami slicing our portfolio of organisations would never have been an appropriate long-term response, regardless of our settlement. We want to build a portfolio where organisations, large, medium and small, are able to prosper as well as survive.”
ACE saw its budget cut from £388m to £349m in October's spending review. The Department for Culture, Media and Sport (DCMS) asked that ACE not cut funding to RFOs by more than 15%.
Maurice Davies, head of policy and communication at the Museums Association, said: "The new system is more transparent and will allow new entrants access to funding. It's far ahead of the way DCMS funds the nationals. But the application process must be fair and support a range of organisations, not just the ones that are fashionable in policy terms."
The launch of the new ACE funding structure coincides with the publication of ACE’s 10-year strategic framework entitled Achieving great art for everyone.