Jeremy Hunt has announced a new £100m funding initiative that will help cultural organisations develop fundraising capacity and build endowment funds.
The money will be split between three funding initiatives: a £55m fund for arts and heritage organisations to build endowment funds; a £40m philanthropy fund for arts organisations; and a £5m fund to help smaller cultural and heritage organisations build financial resilience and improve their fundraising abilities.
The Heritage Lottery Fund (HLF) has today revealed it will contribute £20m towards the scheme. The Department for Culture Media and Sport (DCMS) and Arts Council England (ACE) have already pledged £30m and £50m respectively.
The three strands of the scheme will be funded as follows:
Organisations will have to raise money from private philanthropic sources in order to apply for these grants. Different leverage ratios will be required for grants of different sizes, but organisations are expected on average to raise £2 from private sources for every £1 of public funding.
Although the HLF funding will be UK-wide, funding from ACE and DCMS will only be available to organisations in England.
Carole Souter, chief executive of HLF, said: “This £20m HLF investment challenges voluntary and charitable organisations of all sizes to focus on engaging with new supporters and benefactors."
The £55m endowment fund is expected to open for applications in October, with awards decided in early 2012. A new independent advisory panel, chaired by Michael Portillo, will review applications.
An estimated 50 organisations are expected to benefit from grants of between £500,000 and £5m. Eligibility, criteria and timings for applications will be published in the coming months following consultation.
Speaking at the launch of the fund, Hunt said: “It took the Met in New York over 100 years to build up its £2bn endowment. I want our endowment century to start today. World-class cultural organisations should have world class financial resilience.”
But shadow culture secretary Ivan Lewis warned the endowment fund would not help organisations that are already struggling from funding cuts.
He added: “The test of its success will be whether public funding triggers new private giving, which would not otherwise have been raised, and supports arts organisations that currently receive little or no philanthropic support to develop this source of funding.”
The money will be split between three funding initiatives: a £55m fund for arts and heritage organisations to build endowment funds; a £40m philanthropy fund for arts organisations; and a £5m fund to help smaller cultural and heritage organisations build financial resilience and improve their fundraising abilities.
The Heritage Lottery Fund (HLF) has today revealed it will contribute £20m towards the scheme. The Department for Culture Media and Sport (DCMS) and Arts Council England (ACE) have already pledged £30m and £50m respectively.
The three strands of the scheme will be funded as follows:
- The HLF will provide the full £5m for the financial resilience fund and will also contribute £15m towards the endowment fund.
- ACE will fully fund the £40m philanthropy fund and will also contribute £10m towards the endowment fund.
- DCMS will contribute £30m towards the endowment fund.
Organisations will have to raise money from private philanthropic sources in order to apply for these grants. Different leverage ratios will be required for grants of different sizes, but organisations are expected on average to raise £2 from private sources for every £1 of public funding.
Although the HLF funding will be UK-wide, funding from ACE and DCMS will only be available to organisations in England.
Carole Souter, chief executive of HLF, said: “This £20m HLF investment challenges voluntary and charitable organisations of all sizes to focus on engaging with new supporters and benefactors."
The £55m endowment fund is expected to open for applications in October, with awards decided in early 2012. A new independent advisory panel, chaired by Michael Portillo, will review applications.
An estimated 50 organisations are expected to benefit from grants of between £500,000 and £5m. Eligibility, criteria and timings for applications will be published in the coming months following consultation.
Speaking at the launch of the fund, Hunt said: “It took the Met in New York over 100 years to build up its £2bn endowment. I want our endowment century to start today. World-class cultural organisations should have world class financial resilience.”
But shadow culture secretary Ivan Lewis warned the endowment fund would not help organisations that are already struggling from funding cuts.
He added: “The test of its success will be whether public funding triggers new private giving, which would not otherwise have been raised, and supports arts organisations that currently receive little or no philanthropic support to develop this source of funding.”