Arts Funding Crisis in the UK

Greetings from London, where the arts world is bracing for its worst crisis since 1974, when a combination of steep increases in the price of oil and a coal strike paralyzed the UK economy and, by extension, the arts world.  Fast forward to 2011, and we have another potential oil shock coupled with impending government austerity measures of the like never seen in post-war times.  Unlike in the States, where there is a culture of fundraising and private support for the arts, the UK has long subsidized its arts community with free admission to many museums and heavy subsidies for non-profit theatres.  British patrons, especially those of the middle class, feel entitled to free or heavily discounted access – and it appears that is going to change, and change drastically.

Our clients here are scared.  In theatres, where government support can account for 50% or more, there will be huge holes in their budgets should national and local support go to zero – a real possibility given current budget discussions.  And museums face the real – and terrifying – prospect of having to charge admission to cover their anticipated shortfalls.  How will British patrons respond?  Will there be an outpouring of private support?  Will the privileged and cultured middle class pay for something that they’ve taken for granted as their right?

Unfortunately, I’m not optimistic.  While budget cuts can happen overnight, cultural shifts can take years, if not generations.  But the problem is not only from the patron perspective. Many of these organizations have never had to actively and aggressively fundraise.  Their fundraising efforts can best be described as nascent.  Their core infrastructures for individual giving, whether through annual fund, major gifts or planned gifts, may not be able to support the amounts they need to raise to maintain their current level of service and programs.

And throw these budget cuts on top of an economy in which discretionary spending will be squeezed even more by higher fuel prices, increased taxes and a stagnating or worsening unemployment rate.  Not a pretty picture.  The day of reckoning appears to be near in the UK.  The US non-profit arts market should take heed as we, too, face many of these same issues.  Hopefully, though, the US arts sector, having adapted to survive the Great Recession, is now better prepared to weather the next storm.

Steve Jacobson is President & CEO of Jacobson Consulting Applications, Inc. (JCA)
JCA provides strategic consulting to the world’s leading nonprofits.