Our Response to Common Challenges
Why is fundraising from individuals increasingly important, especially in countries with a strong history of government support for the arts?
The essential challenge faced by many cultural organizations is well-known: Government subsidy can no longer adequately address the gap between earned revenue and expense. Many cultural organizations worldwide are now pressured to develop new revenue sources—and with some urgency.
For too many organizations, the line between health and crisis remains a single donor. For many, that donor has historically been government. Should the focus or giving ability of that primary donor shift, the financial status of too many organizations could decline to the point of collapse.
Understanding this dilemma, efforts in the coming years must be made to spur private sector investment, in particular from individuals and businesses. While this effort must include increased collaboration, efficiency, and earned revenue growth, the lion’s share of this multiyear shift toward stability and sustainability will fall to fundraising.
This shift will require confidence within the private sector that its philanthropy will be well-used, as well as capacity among managers of cultural institutions to provide a high level of donor engagement.