Funding news

£55 million fund announced to help cultural organisations build endowments - 5 July 2011

Secretary of State Jeremy Hunt has announced details of Catalyst Endowments, a £55 million scheme to help arts and heritage organisations secure their long-term financial stability by building endowment funds.

Arts Council England has committed £10 million to the joint funding initiative, along with the Department for Culture, Media and Sport (DCMS) and Heritage Lottery Fund (HLF).

Organisations will be able to bid for grants of up to £5 million to support endowment fundraising from the Catalyst Endowments fund, which will be available to match funds raised from private donors. Bids will be reviewed by an independent advisory panel with around 50 organisations expected to benefit from the grants which will start at £500,000.

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 £2 from private sources for every £1 of public funding.

The £55 million is part of a £100 million Government, Arts Council England and HLF pledge to support philanthropy and will go towards building endowments on a challenge-fund basis. As part of this pledge, a £40 million capacity building and match-funding philanthropy programme, Catalyst Arts , has also been unveiled.

The Catalyst Arts fund will be invested in three different ways:

  1. £30 million of Lottery funds will be invested in an integrated match-funding and capacity building scheme to increase arts organisations' ability to fundraise. This fund will offer tailored awards covering a three-year period and will be open to individual organisations or those working together that have some experience of fundraising. This investment is designed to allow organisations to prepare in the first year, and then explore innovative ways of using match-funding to generate and secure new private giving.
  2. £7 million of Lottery funds will be invested in a one-off grant scheme to support arts organisations with less experience to build their fundraising capacity. Awards ranging from £15,000 - £25,000 will provide individual organisations, or those working together, with the tools and skills to begin to raise, or increase, their private income
  3. a further £3 million of Lottery funds will be invested in making available practical advice on ways to secure new sources of funding. Part of this money will also be used to share the knowledge gained from Catalyst Arts with the wider sector

Further details of both the Catalyst Arts and Catalyst Endowments scheme and how applicants can apply, will be unveiled in September 2011.

These funds have been designed by Arts Council England to help create a more sustainable, resilient and innovative arts sector - one of the five goals set out in Achieving great art for everyone, Arts Council England's 10-year framework for the arts.

For more information, visit the Arts Council England website.