The Government has announced that it is to pilot a crowdfunding scheme to promote use of the model by cultural organisations.
The pilot was announced in the Government’s first white paper for culture in 50 years, launched by Minister for Culture Ed Vaizey late last month. The white paper has two primary areas of focus: increasing participation in culture, particularly amongst disadvantaged children and young people, and helping cultural organisations secure funding from sources other than public funding.
As such, the paper states that the Government will launch a new pilot scheme in partnership with the National Endowment for Science, Technology and the Arts, Arts Council England and the Heritage Lottery Fund “to explore the opportunities for matched crowdfunding as a way of funding cultural projects and to build the evidence base to support the growth of this method of fundraising.”
According to the paper, donation-based crowdfunding grew the fastest among all alternative finance models in 2015, with a 507 per cent year-on-year growth rate and £12 million distributed.
In addition, the white paper states that the Government will also work with Arts Council England, the Heritage Lottery Fund and other partners to support cultural organisations in diversifying their funding, including exploring non-grant sources of income and other ‘innovative means’ of fundraising. It will work with Arts Council England, the Heritage Lottery Fund and other partners to rejuvenate the approach to stimulating interest from key donor groups and to improve the cultural sector’s corporate engagement.
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