1. Philanthropy in the Arts Symphony Services International Orchestras Summit November 2011

2. “Apart from the ballot box, philanthropy presents the one opportunity the individual has to express [a] meaningful choice over the direction in which our society will progress.” George Kirstein

3. Philanthropy in Context

4. Growth in individual giving Source: Giving Australia, 2005 and Current Issues Information Sheet 2011/12, Australian Centre of Philanthropy and Nonprofit Studies, QUT There has been a huge rise in philanthropic donations over the past 2 decades. In 2008-9 growth was checked by the global financial crisis. “For the first time in well over a decade the number of taxpayers claiming tax-deductible donations increased, but the amount of these donations decreased.”

5. Giving to the Arts in Australia Giving Australia recorded an increase in giving to the arts and culture between 1997 and 2004 although it represented the smallest percentage of total giving for that period. Source: Giving Australia, 2005

6. Source : AMPAG Tracking changes in corporate sponsorship and private donations 2011 However as the Major Performing Arts companies have invested in building relationships and fundraising over the past decade, they have begun to reap the rewards.

7. Today private giving contributes almost as much as corporate sponsorship to MPAB companies. In some cases, it has already overtaken corporate support. This is no coincidence. Source: AMPAG Tracking changes in corporate sponsorship and private donations 2011

8. Source: J B Were Philanthropic Services, Australian Tax Office The rise of the Private Ancillary Fund Introduced by Commonwealth Government in 2001 as Prescribed Private Funds (re- defined as Private Ancillary Funds in 2009), these tax vehicles have proved attractive to high net worth individuals. By 31 October 2009 there were 769 PPFs in total. 170 were approved in 2007 alone.

9. Source: J B Were Philanthropic Services, Australian Tax Office The arts fares particularly well from this group with a total of $63.2m distributed to Cultural Organisations between 2002-2008 (second only to Welfare). In 2007-8 Cultural Organisations represented the highest percentage of total distributions.

10. What conclusions can we draw? There has been huge growth in giving by individuals to all causes over the last two decades Individuals give substantially more than corporates There is a relationship between income / wealth and giving The arts and culture are popular among potential major donor groups Investment in building relationships works!

11. What’s next? 1. We need to think harder about ourselves as a cause 2. We must make development a whole-of-organisation commitment 3. We must work at both ends of the pyramid: At the base to build the pipeline At the top to generate major gifts 4. We absolutely must be better at major donor solicitation 5. Then we can think about endowment

12. It takes a village to raise… a major gift Symphony Services International Orchestras Summit November 2011

13. Gift types

14. Questions a major donor asks himself Do I have a compelling, driving belief that this organisation is singularly important? Is it well run or will they squander my money? Who’s involved that I know and/or respect? What, precisely, do they want money for? What difference will my gift make?

15. Critical Success Factors Vision and case for support A concise, compelling vision and case for support which will enthuse and excite potential donors A convincing organisational strategy Strong internal leadership Strong internal leadership capable of inspiring, responding to and managing change, and of interacting credibly with both internal and external constituencies Committed external leadership Strong external leadership – volunteers and ambassadors who provide external credibility and access to new networks Prospects & programs Ability to identify a pool or network or potential sponsors/donors who share the organisation’s aims and vision and have a capacity to give Mechanisms to engage and involve them in the life of the organisation and to reward them for their support and involvement Skills & resources Professional fundraising expertise and adequate resources focused on maximum return on investment A cogent and accessible set of data on current and prospective donor communities Effective performance measures

16. Group 1 Do I have a compelling, driving belief that this organisation is singularly important? How can we demonstrate to this donor that we matter and we have a unique contribution to make? What role can the following roles and functions play? Board CEO Marketing/Communications Artists Other donors

17. How can we demonstrate to this donor that we will spend their money wisely and achieve our (and their) objectives? What role can the following roles and functions play? Board CEO Marketing/Communications Artists Other donors Group 2 Is it well run or will they squander my money?

18. How can we create or capitalise on a peer group network that will convince this donor? What role can the following roles and functions play? Board CEO Marketing/Communications Artists Other donors Group 3 Who’s involved that I know and/or respect?

19. How do we go about developing and articulating the case for support? What role can the following roles and functions play? Board CEO Marketing/Communications Artists Other donors Group 4 What, precisely, do they want money for?

20. How do we go about developing the right ask for this prospect? What should they expect in return? What role can the following roles and functions play? Board CEO Marketing/Communications Artists Other donors Group 5 What impact will my gift make?

21. It takes a village to raise… a major gift Symphony Services International Orchestras Summit November 2011

22. Leadership Roles & Responsibilities

23. The CEO, Executives and other organisational leaders should commit the necessary time, energy and resources to create an environment where philanthropy can flourish.

24. Leadership Roles & Responsibilities Executive Secure the active support of all departments Set targets, projects and resources Engage the Board Engage the involvement of external senior ‘volunteers’ Board Set the tone and articulate the vision Raise donors’ sights and encourage ‘stretch’ giving Enlist senior volunteers and donors by example Guarantee effective stewardship of donations

25. CEO/General Manager Public face of philanthropy Understand and articulate the impact of philanthropy Inspire the Board, volunteers and staff Ensure unity among staff Make the ask Close negotiations

26. Artistic Director Drive the vision and case for support Make time available to spend with prospects and donors Inspire volunteers and donors Feed back prospect information to Development team

27. Philanthropy Director Devise, articulate and implement strategy Manage the organisation and performance of development/fundraising process Educate Executive and Board Manage volunteers Ask Negotiate