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Dateline: 4th November, 2010

ACE Funding: a New Approach

Arts Council England today announced a new approach to the way the arts are funded in England, to coincide with the publication of its 10-year strategic framework, Achieving great art for everyone.

From April 2012, a new funding system will replace the current regularly funded organisations (RFO) system, which provides regular funding to 850 arts organisations.

The new system begins today with the launch of an open application process, to which all existing organisations are invited to apply. New organisations will also be eligible for funding.

Not all organisations will be successful; some may receive more money, and some may receive less. The new portfolio will be smaller than the current one, with the potential loss of more than 100 organisations by 2015.

The four major changes from the existing regularly funded organisation system are:

• the new system will be based on an open application process for all organisations, rather than a continuous system of funding that has led to a relatively static portfolio
• funds awarded will be for a fixed term of normally three years, but there will be the flexibility to have variable funding terms of as little as two years or as much as six years
• the funding agreement with individual organisations will be tailor-made, based on the delivery of shared goals and the fulfilment of clear criteria, rather than the box-ticking targets of the past
• the funding agreements will be based around ‘strategic’ and ‘programme’ relationships with organisations, rather than a ‘one-size-fits-all’ relationship

Lottery monies will continue to be used alongside for some limited investment in capital projects, for strategic opportunities, and for Grants for the arts – the open-application Lottery scheme that is focused on funding artists and developing talent. Grants for the arts will have more money made available for the new and the innovative.

The new approach envisages two types of relationships with arts organisations: a small proportion of 'strategic' organisations and a larger proportion of 'programme' organisations that are funded on the basis of their programmes of work.

The former are those organisations with which the Arts Council will form a strategic alliance. These organisations, which form the backbone of the arts in England or which have an important strategic role, will take responsibility for the development of the arts beyond their organisations, not just for the work they do. They will be expected to demonstrate excellence and leadership at a national or local level.

The latter are those organisations and individuals which deliver outstanding artistic work in their field, and are also part of the creative lifeblood of the arts in England.

The result of the changes will be:

• organisations which will no longer be part of the portfolio from April 2012 will be given 12 months notice
• decisions can be made on a consistent basis across the country, drawing on regional knowledge and a national overview
• decisions can be made in discussion with co-funders, in particular local authorities, to ensure that the cumulative effect of public sector cuts is managed in the best possible way
• key cultural assets are, as far as possible, maintained

There will be two stages in making the decisions:

The first stage will be an assessment of the application itself and the organisation’s ability to deliver against the Arts Council’s strategic goals. The second stage will be about balancing the overall portfolio that the Arts Council wants to support to achieve the long-term vision.

A balanced portfolio will need to have the right mix of ‘strategic’ and ‘programme' organisations. It will also need to embrace:

• a proper range of artforms
• organisations of different sizes and strengths, all of which have a real engagement with audiences
• real partnership working in order to achieve maximum resilience
• work that reflects the rich and diverse cultural landscape of contemporary England
• the broadest geographical spread so that everyone has the opportunity to experience the richness of the arts

The application timetable for new funding system for national portfolio organisations will be

• Applications open: 4th November 2010
• Applications close: 24th January 2011
• Decisions announced: March 2012
• New national portfolio organisation system goes live: April 2012

Details of eligibility and the process for applying to become at portfolio organisation can be found on the ACE website at www.artscouncil.org.uk/funding/national-portfolio-funding/eligibility/

Liz Forgan, Chair of Arts Council England, said, "While the funding cuts will have a severe impact on our budget, they will not dent the shape of our ambitions for the arts and audiences in this country. We are determined to take a long-term view, and to achieve the goals set out in our new 10-year strategic framework.

"Salami slicing our portfolio of organisations would never have been an appropriate long-term response, regardless of our settlement. That is why a vision for the future is so important to us.

"We want to build a portfolio where organisations, large, medium and small, are able to prosper as well as survive."

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©Peter Lathan 2010