Arts and business sponsorship manual

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Published by Arts & Business Nutmeg House, 60 Gainsford Street, Butler’s Wharf, London, SE1 2NY T: 020 7378 8143 F: 020 7407 7527 E: head.office@AandB.org.uk W: www.AandB.org.uk President: HRH The Prince of Wales Chair: Baroness Helena Kennedy QC Chief Executive: Colin Tweedy Company Registered in England No. 1317772 Charity No. 274040 Price £15.00 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the copyright holder. © Arts & Business 2005 ISBN 0-9544 685-3-8

Sponsorship Manual Fifth edition

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Arts & Business Sponsorship Manual Fifth Edition

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Introduction by Colin Tweedy Since the first edition of the Sponsorship Manual was published in 1993, thousands of copies have been distributed. Although we now produce a wide range of specialist publications, this manual undoubtedly remains the most popular. One of the reasons behind its success is that it has been regularly re-written and refreshed to reflect the best in current thinking on the subject. The first edition was written by Mary Allen, the second by Tim Stockil, the third, fourth and fifth editions by Gavin Buckley and this fifth edition has been edited by Tania Noble. Together they have many years’ experience in the field and their cumulative knowledge is the basis of this book.

I am delighted that by reading this manual you have chosen to develop your skills in the area of business partnerships with the arts. Arts & Business has been working in this field for just under 30 years and over this time there have been many developments. Commerce and culture now work together in so many ways, delivering such a range of mutual benefits that the term ‘sponsorship’ is insufficient to encompass them all. However, sponsorship remains a fundamental partnership between business and the arts which Arts & Business steadfastly promotes.

During these 30 years, many arts organisations have become adept at securing business sponsorship and the commercial sector has learnt to exploit the many commercial benefits that sponsorship can offer. But we still believe that sponsorship must be undertaken in a professional manner if it is to be a valuable and sustainable activity.

More than ever before, all partners in sponsorship are being asked to prove the value of their investment. To assist in this, Arts & Business has published a range of guides that give practical assistance in evaluating arts sponsorship. I would thoroughly recommend that you also take the time to read these publications.

I do hope that you find this publication both informative and inspiring. And I do hope that you take the opportunity to work with Arts & Business in other ways in the future.

Good luck with your efforts in developing truly rewarding projects.

Colin Tweedy Chief Executive October 2005

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Contents Introduction by Colin Tweedy, Chief Executive, Arts & Business 1 2 3 3 5 7 9 10 12 14 15 17

1. Sponsorship and the Arts Maecenas to Rockefeller What is business sponsorship?

Other ways to fundraise Sponsorship as an element of marketing Sponsorship as an element of Corporate Social Responsibility Sponsorship & Creative Development Why businesses sponsor the arts Trends in UK arts sponsorship Models of arts sponsorship in Europe Models of arts sponsorship in the USA

2. Five Steps to Obtaining Arts Sponsorship

18 Process overview 18 18 19 19 21 21

Step One. Assessing your organisation What do you require?

Do you have the resources?

Use of your board and trustees Tips for making the most of your board Are there limits on which businesses you approach?

21 How much are you prepared to offer?

22 Step Two. Developing sponsorship packages 22 Getting to know and describing your audience 22 Identifying projects 22 Sponsorship benefits 24 Sponsorship benefits dos and don’ts 25 Pricing 25 The proposal 26 The covering letter 26 Inserts and attachments 27 Step Three. Identifying companies 27 Developing your own information bank 28 Selecting target businesses

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Step Four. Making a successful approach Timing your approach Method of approach The meeting Handling objections After the meeting and follow-up What happens if they say ‘no?’ Cultivation events Tips for running a cultivation event

33 Step Five. Developing a lasting partnership 33 Making a formal agreement 33 Project management 33 The future 35 3. Evaluation 36 What is evaluation?

36 Some key terms 39 4. Sponsorship 40 Cash sponsorship 40 Sponsorship in-kind

and Taxation

5. Arts & Business

41 42 42 42 43 43 43

Arts & Business Board Bank Skills Bank Mentoring programme Arts & Business New Partners The Development Forum

45 46 49 50 52 56 57

Sample proposal Sample covering letter Sample letter of agreement Sample contract Further reading Arts & Business contact addresses

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Glossary

Appendices

Acknowledgements from the 4th edition Many people and organisations have played a part in writing this publication. Special thanks must go to the Department for Culture, Media and Sport for making the publication possible and to Clerical Medical Investment Group for their sponsorship.

In addition, my sincere thanks to Andrew McIlroy, Lisa Ball-Lechgar, Paul Brown and Philip Spedding, all from Arts & Business, for their invaluable help in writing this manual.

Gavin Buckley, Director of Projects August 2001

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1. Sponsorship and the Arts

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Maecenas to Rockefeller Contrary to popular belief, business sponsorship is very much a twentieth century phenomenon.

Though the Ancient Greeks in Athens and individuals like Gaius Maecenas (c.70-8 BC) in Ancient Rome were great patrons of the arts, we have to look to Renaissance Florence to find the first seeds of commercial support. The once great Medici family poured untold wealth into their city and the arts flourished. This, incidentally, was not without criticism from some quarters. In 1432 malicious stories began to circulate about Cosimo de’ Medici.

It was claimed that his well-publicised patronage of religious charities and building funds was utter hypocrisy, the conscience money of a loan shark, given to promote his family’s glory and nothing more. Did he not ensure that the Medici insignia (which today we might call a logo) was prominently displayed on any building that he paid for? It was said that he had “emblazoned even the monks’ privies with his balls!”1 (The coat-of-arms being a series of red balls on a field of gold.) Despite this, under Medici patronage, the Italian Renaissance blossomed. Notably, in 1581, they built the world’s first art gallery, the Uffizi, between their residence and the seat of government. However, these great bankers were also rulers of the city and often the state, becoming cardinals and once Pope (Leo X), and therefore could be argued to be representatives of the state itself rather than the commercial world.

Rather it is in America that the modern movement that we now call business sponsorship has its origins.

The Founding Fathers across America were often the same people who created the cultural centres that are famous today. The names Rockefeller, Frick, Guggenheim, Mellon and Getty are just some of the leaders of the business world whose artistic patronage has ensured their immortality.

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American corporations believe they have a duty to support the cultural life of their town, their city, their state and their country. In 1967 David Rockefeller formulated the philosophy of the world’s first organisation dedicated to bridging the gap – The Business Committee for the Arts, Inc.2 saying: We ... can contribute to bringing about in America a renaissance of beauty and creativity and greatness in culture.

This generally philanthropic ethos of American companies remained prevalent for 30 years but now the great ‘latter-day Medicis’ are gradually being replaced. Corporate restructuring and global recession has meant that the emphasis has shifted away from philanthropy towards commercial return.

A move from patronage to sponsorship.

In Britain, in 1976, an organisation called ABSA (the Association for Business Sponsorship of the Arts) was created by a group of far-sighted business leaders to promote and encourage partnerships between business and the arts for their mutual benefit and for the benefit of the community as a whole. Back then business sponsorship of the arts was estimated to be about £600,000 p.a. – tiny compared with today’s figure. In addition, there was a widespread mistrust, even fear, between artists and businesspeople leading some to believe that the partnerships ABSA was setting out to foster were, at best, inappropriate. Now, over a quarter of a century later, ABSA has become Arts & Business and sponsorship of the arts is a proven and accepted activity in the UK with over £120 million being invested by business in 2002-03.3 Furthermore, many businesses are involved in long-term partnerships with the arts, rather than just one-off sponsorships, and the really smart ones are seeking to broaden and deepen their involvement still further through employee volunteering, arts-based trainingand bringing art and artists into the workplace itself.

“The Rise and Fall of the House of Medici”, Christopher Hibbert, 1979, Penguin Books ISBN 0140050906 For more information see www.bcainc.org Source: Arts & Business, Business Investment in the Arts Survey 2002/2003

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What is business sponsorship?

Before attempting to secure sponsorship it is vital to have a clear understanding of what sponsorship is and how it differs from other sources of income available to your organisation. If you do not have a clear understanding of what you are seeking it is practically impossible to approach a potential sponsor in the right way. Indeed, the business itself may misunderstand the concept, perhaps confusing ‘sponsorship’ with ‘donation’. In such cases it will be down to you to ensure they have the correct understanding.

Arts & Business defines arts sponsorship as: “the payment of money by a business to an arts organisation4 with the explicit objective of promoting the business’ name, its products, services or image. Sponsorship is part of a business’ general promotional spending and may encompass staff development as well as a sense of corporate or social responsibility.”

With sponsorship there must be a commercial return for the business and your sponsor will expect value for money. It follows that when you approach a business for sponsorship, you are selling something which is of commercial benefit to the business.

Business sponsorship is clearly distinct from the other sources of income available to an arts organisation:

Earned Income Earned income is money an arts organisation earns through sale of goods or products, for example, ticket sales/admissions, programmes, merchandising, café facilities, sale of work, commissions, arts-based training etc. It includes retailing, proceeds from room hire and corporate memberships. Clearly, sponsorship is also an “earned income” but it is useful to distinguish it, since the skills involved in securing it are different.

Grants Grants are slightly different to subsidy and will become of increasing importance in the future.

Subsidy is the statutory responsibility of a government body as defined above. Grants can be understood better as a discretionary decision to fund as part of a wider set of objectives. The money still comes from public coffers. Many international bodies such as the Council of Europe, the European Commission, UNESCO or the World Bank will provide financing for specific projects. This is grant funding, not subsidy, since the funds will usually be tied to very specific outcomes. The difference is important in that subsidy is often the result of historical relationships, but grants have to be developed in an on-going relationship.

Grants usually require an active relationship to be established with the grant body and proof of professionalism or results.

Donation A donation is money from individuals, businesses, trusts and foundations for which no return is sought other than a ‘thank you’ and perhaps a line credit in a programme. A donation is a gift for which no return is asked or given.

Clearly, the way of selling a sponsorship package to a business will be entirely different from asking for a donation. This manual is concerned entirely with how best to begin and develop lasting relationships with business sponsors. It does not address itself to the similarly important question of raising donations from individuals, businesses or trusts and foundations.

Other ways to fundraise In addition to sponsorship, there are several other ways for you to raise funds, as summarised below.

Subsidy

Donations and Friends Schemes

A subsidy is money from bodies with a duty to support the arts financially. For example, the Arts Councils, the Regional Arts Boards, Re:source, Area Museum Councils, the Film Councils and Scottish Screen all have a statutory duty to fund the arts.

A donation is a gift for which no return is asked for, or given. If you do give a return in exchange for a donation not only does it cease to be a true donation, but also you could be exposing your organisation to VAT. Donations may be cash or in kind.

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For the purposes of simplicity in this manual, the term ‘arts organisation’ includes the visual, performing and literary arts, as well as museums and heritage sites which share a not-for-profit status. Individual artists are not included.

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Individual Giving is becoming an increasingly important source of income for the arts. In setting up an individual giving scheme it is important to differentiate between those schemes designed to encourage attendance (i.e. a glorified mailing list for which a small charge is made), and those which are designed to generate significant income. With the latter group you need to identify clearly the potential members of the scheme, how much they might be able give, what benefits they would find attractive and whether the profits from the scheme are then sufficient to cover the time and other costs needed to service it. Given the benefits being offered, remember that almost all individual giving schemes will be viewed as earned income for the purposes of VAT. More about this subject can be found in the Arts & Business Individual Giving Manual, which can be downloaded at the A&B website, www.AandB.org.uk

Legacies Smee & Ford, advisers in legacy fundraising, have estimated that charities receive around ÂŁ1.2 billion from legacies/bequests every year. This makes it the single largest source of voluntary income in the UK. They also suggest that only about 0.7% of this goes to the arts. The reasons for this are many. However, you can improve your potential income from this source by putting together a plan that ensures that those who might support you in this way are aware that you are an interested potential beneficiary. You may need to be willing to offer a series of benefits now in return for a legacy commitment in the future.

Trusts and foundations Trusts and foundations should be treated in almost exactly the same way as you will be treating businesses after reading this book! If you are planning to make an application to a trust then you need to research those trusts that might be interested in your work. You should identify what in particular you do which fits their criteria, identify what differentiates your work from that of the many others who are also making applications and identify the best way to approach that trust (application form, personal approach to a Trustee etc.) If you are successful, then again, as with businesses, it is

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important to develop your relationship with that Trust: acknowledge their letters, keep them informed on the project’s development and, at the end of the project, give them an honest evaluation report on how the project went.

Businesses work with the arts in a variety of ways.

Much of this is cash sponsorship, however, there are several other ways businesses may wish to work with you.

Corporate membership schemes With corporate membership, a business pays a fixed sum each year in exchange for a standard package of benefits. Such schemes often operate on several levels with a number of packages available at different prices.

As with sponsorship, it is important to recognise that companies will only remain in corporate membership schemes if they value the benefits on offer. Therefore you should not only design these schemes to provide benefits of genuine interest to business, but you should also make sure that the members then take up their benefits through the year. If they don’t, they may leave the scheme because they perceive little or no value.

Employee volunteering A business makes its employees available to work with an arts organisation free of charge. The employee passes on his or her specialist knowledge while the process acts as excellent management development opportunity for him/her. Both sides stand to gain from the arrangement. Indeed, Arts & Business has been running a Skills Bank programme along these lines for many years.

Sponsorship in-kind Sponsorship in-kind is the provision of products, services or advice (as opposed to cash) in exchange for business benefits. The business uses the benefits to promote its name, its products or services. As with cash sponsorship, you must charge VAT on the sponsorship in-kind (see section 4). Remember, if the business does not expect benefits in exchange for its products then it is considered a donation in-kind and is therefore not subject to VAT.

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Other fundraising schemes

Product

There is a wide range of fundraising activities that you can undertake. It is important to bear in mind that sponsorship is no panacea and that your decision to sell sponsorship should be taken in light of your earning and fundraising potential. Clearly, you want to maximise your return from as many sources as possible rather than concentrating disproportionately on just one or two sources.This point is discussed again when we look at the first steps to obtaining sponsorship, in section 2.

Quality, features, options, styles, brand name, packaging, sizes, customer service, warranties, returns

Price List prices, discounts, allowances, credit terms, payment periods

Promotion Advertising, personal selling, sales promotion, publicity, sponsorship

Place

Sponsorship as an element of marketing To be effective in selling sponsorship it is helpful to understand how some businesses use arts sponsorship as part of their marketing activity.

A business’ marketing department is responsible for more than is, perhaps, immediately apparent. It is often thought that marketing is simply to do with the way in which products and services are advertised and sold. This is, of course, part of marketing, however, marketing begins long before this with research into customer needs and expectations and the subsequent informed selection of target markets.

Marketing then specifies and develops products and services to meet the needs of the chosen market(s) and decides upon matters relating to price, distribution and promotion.

The mixture of controllable elements within marketing (product specification, price, colour, advertising, packaging, etc.) is known as the ‘marketing mix’. This is not a new idea, but remains one of the key concepts in marketing theory and it is helpful for those seeking sponsorship to know how they may fit in with this.

Channels of distribution, geographic coverage, sales locations, stock levels, transportation Notice that sponsorship is one of the variables concerned with the promotion of a business’ name, products or services. It can also have an impact on place where a sponsorship allows sampling of product or where a relationship between venue and sponsor develops to allow merchandising of the product through the venue. There are many ways in which a business may promote itself and, to some extent, you are competing with these when you approach a business for sponsorship: • Advertising (TV, radio, press, hoardings, Internet, etc.)

• Sales promotion (samples, coupons, competitions, loyalty cards, etc.)

• Publicity (media coverage that is not paid for) • Other sponsorship (sport, broadcast, community, etc.)

Jerome McCarthy popularised a four-factor classification of the elements of marketing called the ‘Four Ps’: product, price, promotion and place:

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Having said all that, some businesses won’t approach arts sponsorship from the marketing angle.

Indeed, some reject this approach entirely, looking instead for ‘social value’. For example, some will have specific community support budgets from which their arts sponsorships will be paid. However, regardless of which department or budget the money comes from, arts sponsorship will always provide a business with some specific commercial value that is open to evaluation.

Case Study: using the arts for marketing and PR benefit Client Unilever Arts partner Tate Modern Challenge To reinforce Unilever’s creativity to an audience of key opinion formers Benefits delivered • Unilever widely identified as innovative and creative • Increased employee pride in the company • Tate Modern able to commission bold new installation with a high international profile • Winner of Arts & Business Champion of the Year Award It is often said that the weather is a British obsession.

The Weather Project, Olafur Eliasson’s installation at Tate Modern in London, certainly was. Spectacular both visually and emotionally, it drew over two million visitors in six months. At one end of the gallery’s vast Turbine Hall, a giant semi-circular form made up of hundreds of mono-frequency lamps was reflected in an overhead mirror the length of the hall, creating a giant sun and turning the Turbine Hall into a vast duotone landscape. Meanwhile, a fine mist hung in the air, accumulating into faint, cloudlike formations.

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The Weather Project was the fourth work in The Unilever Series – the result of a £1.25m sponsorship from Unilever to fund five years of newly commissioned art works. Creativity and innovation are linchpins of Unilever’s strategy – qualities shared by the installations in The Unilever Series. For the company, which pledged its commitment even before the gallery opened in 2000, the sponsorship is a way of associating its corporate brand and business strategy with these values – and communicating them to a high-level audience, including government, NGOs and the media.

The Unilever Series has been a big success – and Unilever has committed a further £1m to extend its sponsorship until 2008. Research shows that three-quarters of the key opinion formers targeted

by Unilever now associate the company with supporting the arts – and that people are significantly more likely to describe Unilever as innovative, creative and community-spirited. Unilever employees agree: according to research, they say the sponsorship strengthens the company’s association with creativity – and reinforces their pride in working for Unilever.

Unilever has organised well-attended hospitality events at Tate Modern for its target audiences, as well as a number of special arts-based events for Unilever employees. Meanwhile, all visitors to the gallery witness some highly ambitious works of modern art for free. And, for Tate Modern, the long-term commitment of Unilever provides a solid foundation for the risk-taking that is essential to powerful, new work – thereby attracting worldwide recognition for the gallery and its sponsor.

“The Unilever Series has fulfilled all our ambitions.

To a high-level audience we’ve successfully reaffirmed the link between the Unilever brand and the creativity that is key to meeting consumer needs and growing the business.”

Gavin Neath, Chairman, Unilever UK

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Sponsorship as an element of Corporate Social Responsibility The Corporate Social Responsibility Forum5 defines Corporate Social Responsibility (CSR) as: “… open and transparent business practices that are based on ethical values and respect for employees, communities and the environment. It [CSR] is designed to deliver sustainable value to society at large, as well as to shareholders.”

The CSR debate has matured in both the UK, across Europe and further afield. Many businesses are realising that being seen to be socially responsible can have an important positive influence on the way they are perceived by their stakeholders, whether these be customers, regulators or staff.

The concept of what CSR is has also developed.

From a rather general, if not vague, concept of “being a good company”, CSR practice now focuses on areas such as: • Supplier relations • Staff development • Health and Safety • Business principles • Marketing • Volunteering • Minimising waste • Community investment The arts can help deliver solutions in a number of these areas. For example forum theatre can help in the resolution of supplier issues or the communication of health and safety policy, staff can volunteer by joining arts organisations’ boards, while arts causes can help in cause-related marketing.

The Community Investment debate is in some respects an old one – many businesses have been supporting community projects and philanthropic activities for a very long time. Today’s Community Investment is distinguished, however, by an attempt to marry the philanthropic goals of responsible business to their long-term commercial interests. It makes business sense to build opportunity, initiative and confidence in communities. These are the communities from which business will take their employees. It is only rational to contribute to crime prevention programmes or to cultural diversity actions since these reflect the concerns of customers and shareholders. Increasingly, businesses see their role as extending beyond the very narrow definition of profit, into a wider concept of value. Community Investment is one way in which today’s businesses are seeking to create and add value for all of their stakeholder groups.

The arts have always played a very important role in education, in creating community and in providing employment. There is evidence that businesses are shifting more and more of their funding away from “stand alone” programmes into “engaged” projects which reflect their longer-term ambitions. Community Investment budgets are growing in response, and much of the arts world has worked out an appropriate way to play a role in the Community Investment agenda, without losing sight of their own mission.

At its most positive and exciting, the Community Investment agenda offers the arts a vision of their role in society, one that promotes their capacity to influence peoples’ lives in radically new ways.

However, the vast majority of arts activity supported through CSR would be justified through Community Investment.

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The Corporate Social Responsibility Forum is affiliated with The Prince of Wales Business Leaders Forum and promotes responsible business practices that benefit business and society. Their comprehensive website may be found at www.csrforum.org. Much work is being carried out in this field across Europe.

For more information consult www.CSReurope.org

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Case Study: musing the arts for CSR benefit Client HSBC Bank Arts partner The University of Leicester Richard Attenborough Centre for Disability & the Arts Challenge • Raise HSBC’s profile throughout the Midlands while making a noticeable impact on the local community • Increase staff awareness and understanding of equality and diversity • Improve employee skills, particularly in customer service Benefits delivered After ten months of a planned 36: • Strong media coverage, raising HSBC’s profile and favourability ratings • Platform for reiterating HSBC’s equality and diversity strategy to all employees • High level of staff involvement: 14% vs. target of 10% • Participating staff report enhanced morale, loyalty, creativity, teamwork and communication skills • Art exhibitions have attracted corporate customers and visitors from neighbouring organisations

Attenborough Centre (RAC) at the University of Leicester, an arts centre with a difference. It’s open to all, but focused on people with disabilities – providing education, training and performance opportunities in music, art, dance and drama.

As a good neighbour, HSBC could have just provided financial support. But it spotted a great opportunity to offer staff some real involvement. It has built a deeper relationship with the RAC that operates on several levels.

Under the banner A New Musical Generation, HSBC has committed to a three-year sponsorship enabling the RAC to stage full programmes of evening concerts.

These showcase young musicians linked with the RAC and have been well supported by the bank’s staff. In addition, an Arts & Business New Partners investment has enabled the bank’s staff to take part in visual arts workshops with RAC teachers and students. These have been consistently oversubscribed, and participants report that the workshops have helped to improve team-working, creativity and communication skills – directly enhancing customer service. Several members of staff have now volunteered as classroom support workers at the RAC. The contribution to equality and diversity has cut both ways: while the bank staff have benefited from working more closely with disabled people, they’ve also brought greater ethnic and age diversity to the RAC.

You can talk to your staff about your brand values.

You can talk to them about equality, diversity and inclusiveness. But what’s going to bring those lofty principles to life? What’s going to get people talking about your brand values among themselves, or thinking about equality and diversity in their own working lives?

And the CSSC now stages exhibitions of art by pupils and tutors at the RAC, as well as its own people.

These provide a major talking point with visitors, and further opportunity to foster awareness of a well-established partnership that HSBC staff feel proud to be involved in.

For HSBC, the answer was: give them some hands-on experience. The bank’s UK Commercial Service and Sales Centre (CSSC) employs over 600 staff in Leicester. One of its neighbours is the Richard

“The world is a rich and diverse place in which cultures and peoples should be treated with respect. We have a great deal to learn from them.”

Extract from HSBC Brand Promise

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“It’s nice to work for a company that does this.”

“I’ve learned so much – and not just about creativity.”

HSBC staff

Sponsorship & Creative Development Businesses, large and small, can benefit in a variety of ways from the skills, values and techniques that the arts can bring to the workplace. Arts & Business advocates this work under the heading ‘Creative Development’. Creative Development for business can include areas like arts-based training, forum theatre, artists-in-residence, corporate art collections, arts clubs and performances in the workplace. Not only does this type of work show businesses that a relationship with the arts can be a genuine partnership of equals, helping them to meet their business and training needs, but it can also bring new audiences to the arts. Furthermore it can enable those working in the arts to maximise their income from the assets of knowledge and skill that they already possess.

Case Study: Creative Development Client TBWA\GGT Arts partner Soho Theatre Company Challenge To help TBWA\GGT win work with new and existing clients Benefits delivered • New ideas for expanding business with clients • Improved pitching skills – and more people now equipped with those skills • Cemented new organisational structure within the agency • Just one idea from the project resulted in £30,000 increased profit

Communications agency TBWA\GGT and Soho Theatre Company are opposite each other on Dean Street in London. But despite both being centres of creativity, the relationship had been based on no more than ticket and corporate events sponsorship since 2000.

That relationship entered a new phase when the agency was looking for ways of giving its employees creative inspiration. With support from the Arts & Business New Partners investment, Soho Theatre devised a writer-in-residence project as part of the agency’s sponsorship of the theatre. Its success led to Pitch Theatre, a project that focused on developing the agency’s skills in pitching for new business.

Through a series of workshops held at the theatre, each of the agency’s newly formed brand teams worked with the Soho Theatre and theatre company Dramatic Resources to develop a prospective pitch.

One of the project’s objectives was to improve people’s pitching skills and inspire them to think of innovative ways of expanding business with existing clients.

Another was to cement the agency’s new clientfocused organisational structure by encouraging each brand team to work together more closely.

Using the rehearsal process as their inspiration, the workshops focused on improving people’s ability to communicate ideas simply and powerfully, and encouraging them to think on their feet.

At the end of the process, the brand teams presented their final pitches to the agency directors and the other teams, with awards being presented in several categories. The climax of the project was the rehearsed reading of a play by Dramatic Resources based on their experiences at the agency. For everyone at TBWA\GGT, the play was an amusing take on their working life – but it also reinforced many of the points they had learnt throughout the process.

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The project has had tangible results: additional work worth £30,000 came from one client who bought into an idea developed in the workshops.

will want to associate itself with poor quality and failure. It is vital to bear this in mind when writing a Sponsorship Proposal (see section 2, step 2)

“Our partnership with Soho Theatre Company grows year on year, because we find new collaborations that stimulate totally new and interesting perspectives on our work. It’s rare to find a relationship that’s so multifaceted and at the same time so relevant.”

Jenna Laxton, Business Development Director, TBWA\GGT

• To build ‘brand values’ through association with the images embodied by the arts and arts organisations. Images such as youth orientated, trendy, conservative, quirky, innovative, environmentally aware, community orientated, local, national, international, etc., may be attractive to a business. Remember that many businesses are now much more about selling brand image than about selling product. Your project might be the key to differentiating one product brand values from another

“Our teams came up with fresh and innovative ideas on how to approach their day-to-day work and increase new business – I was overwhelmed by the quality of the work and the team spirit.”

Mike Cornwell, Chief Executive, TBWA\GGT

Why businesses sponsor the arts A business is likely to sponsor the arts for a combination of the following reasons:

Direct access to target market The audience attracted to a particular arts organisation’s work may have a similar profile to the existing and potential customers a business is targeting. By sponsoring such an arts organisation the business can directly and precisely target potential customers in a cost effective manner.

Name awareness Arts events tend to generate a quantity of print (posters, flyers, programmes, etc.). A business can use this as a way of raising their visibility through the inclusion of their logos / brand names on this material.

Image enhancement Business image matters. A business may sponsor the arts either to combat negative perceptions or to build positive attitudes and values in the minds of its target customers. For example, specific objectives may be: • To associate the business or brand with quality, excellence and success. This is a pre-requisite, as no business

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• Innovation. Businesses put innovation and creativity at a premium today. Contact with and experience of the arts is one way to maintain such new thinking and imaginative responses inside a company, especially if backed up by arts-based training and arts at work projects. Sponsorship can be the first step to other kinds of arts-business relationship • To improve a poor image brought about through the business’ day-to-day activities. In such cases, the sponsor will want to be seen to be supporting worthwhile and important causes to balance the perhaps inevitable negatives associated with its business • To improve a poor image brought about through a specific event that has led to negative perceptions among the business’ target audience. For example, a business which has recently opened a new shopping complex may have upset local residents who may not have wanted the project to go ahead in the first place or were upset by the noise and dirt generated by the construction process. Local arts sponsorship can be used to soften and alter such negative perceptions (see also developing community links below) • To create a different image from that of competitors. In this way a business can differentiate itself from the competition - vital in most markets. For example, the intrinsic qualities of various brands of beer are similar and customers make their buyingdecision based on other factors, such as image and brand values

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Entertaining Entertaining, or ‘hospitality’ as it is sometimes called, is often one of the key objectives a business has when sponsoring the arts. The sponsor may wish to entertain a combination of: • Existing customers or clients • Potential customers or clients • Shareholders • Staff • Key suppliers • Opinion formers (e.g. government and media contacts) Arts events can make excellent settings for corporate hospitality. An enjoyable event combined with a convivial atmosphere is not only an incentive for guests to attend, but is also conducive to good business. Such events provide what is commonly called a ‘safe-space’ for good business relationships to develop.

PR opportunities Most arts events can generate PR opportunities for the sponsor. Photo opportunities involving celebrities are well known in this respect. However, it should be possible to think of other more creative activities to generate media interest and coverage.

Enjoyment Let us not forget that one of the many benefits of arts sponsorship is that it is enjoyable in its own right. Sponsoring art is certainly a lot more stimulating than buying advertising space in the local newspaper. Arts organisations do well to capitalise on their ability to make their relationships with business people a distinctive, creative and inspiring experience.

Case Study: Bellenden renewal area - a collaborative partnership

Staff relations This may be considered a type of entertaining (as shown above), however, it is important enough to warrant discussion in its own right.

Many businesses don’t just pay lip service to the fact that their employees are their most precious asset.

They wish to look after their staff (and often their families) in ways which go beyond simply paying a salary. This helps to engender commitment and enthusiasm among employees that, in turn, lead to increased efficiency and effectiveness at work. Arts sponsorship can provide many opportunities for a business to foster such an environment. For example, free tickets, staff evenings or taking the art into the workplace itself.

Developing community links The ability to develop links with the local community is important for many businesses. It may be that the sponsor is a national or international business wishing to engender a positive local profile to stimulate sales and promote quality staff recruitment.

Alternatively, it may be a local business wishing to highlight its presence for similar reasons.

“Having the artists on the case makes us rather proud, but more important is that it’s making this place home for us”.

Local resident In 1996 the Housing Committee decided to commission a feasibility study to look at the condition of the Private Sector Housing Stock in various areas of Southwark, South London. The report revealed a considerable level of disrepair amongst the houses in the Bellenden ward, up to 84% in disrepair and over a third of residents in the area were on means tested benefit. Following a detailed consultation with residents, London Borough of Southwark Council declared the Bellenden Renewal Area, in 1997.

The key objectives for the ten year regeneration scheme were to: • Provide better standards of housing for residents • Improve the local environment, including transportation, parking provision and open spaces • Facilitate training and employment opportunities for local people • Stimulate and maximise the involvement of the private sector

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• Involve the community in decision-making and raise the aspirations within the area • Reduce crime and fear of crime and improve the quality of life of the community.

London Borough of Southwark Council took these key objectives to the local community, to seek their guidance as to how a project of this scale is best implemented.

The feedback from the community was clear – regeneration projects often fail because people are brought into the community from the outside and then leave at the end of the project. The community posed an important question to the Council, “Why can’t we use local businesses, local artists, and local people to drive forward this project?” The Council’s response was to create ‘The Art of Regeneration’.

The involvement of the local community in all decision-making has been absolutely key to the Art of Regeneration project – which projects should be supported? Where should the money be spent? Who gets an Antony Gormley bollard outside their front door? As Roger Young, Senior Housing Officer at Southwark Council says, “Our project is all about asking residents what they want for their area.” Simple.

Various businesses including Thames Water, the Wishing Well Inn and Aquila and Chas Unisex salon have recognised the value of the partnership and invested in the project – applying and gaining Arts & Business New Partners awards to enhance their investment. The project has made a clear impact in the area. Local traders noticed rising numbers of people stopping to admire the area with pub takings up and crime figures down, public art has illustrated its value to the community.

The artists have found the project approach inclusive and open. The Council has made use of the huge wealth of artists in the local area as well as attracting some international practitioners. The residents of Bellenden ward have certainly risen to the challenge.

“Working with the artists has helped us focus on making our area better.”

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So far the streets have experienced a total facelift. For example international artist Antony Gormley worked alongside engineers at Thames Water (sponsors of the project) to develop new and innovative designs for the service covers.

These designs will be installed throughout Bellenden and become part of the fabric of the area. New street lights have been designed by Royal Academician artist Tom Philips; new bollards designed by Antony Gormley; pavement and bus stops designed by Zandra Rhodes and a complete re-design of Choumert Market

by Sokari Douglas Camp. Interior designs have been created for local hairdressers, pubs, restaurants and launderettes of Bellenden; and artist Lucy Swan designed a topiary project for the Southwark Muslim Women’s Group.

In its first 8 years the project has been a huge success, bringing new visitors into the area, creating press and television interest, and even helping to generate interest in local property. The artists and businesses involved in the project have enjoyed giving something back to the local community, and new collaborations and projects have sprung up to continue the legacy of the project. But perhaps what all parties are most proud of is the fact that this project has remained a community owned project.

Trends in UK arts sponsorship Since 1976, business investment in the arts has grown significantly from £600,000 to over £120 million. In addition, the channels of investment have expanded. Art for art’s sake may be a reasonable concept but not one that puts culture on the priority list for business support. The arts are a tool, not just a vehicle; they can be used within an infinite number of mediums: to educate, to empower, to facilitate and to demonstrate. The arts can effectively demonstrate a company’s sense of social responsibility, thus adding value to a brand manager’s promotional strategy. Some recent trends in arts sponsorship are:

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The growth of the sector The best relationships to emerge in recent years are those that involve the business and arts organisation in a mutual partnership that delivers tangible benefits to the bottom line. The sponsorship market is maturing and Arts & Business is beginning to see ever more imaginative and successful sponsorship programmes. The geographical spread of sponsorship is still biased towards London, although other regions have also been extremely successful.

Arts sponsorship remains excellent value compared to the increasing cost of sport and broadcast sponsorship and can still offer exclusivity to a wide range of businesses.

2005 is the special European Year of Corporate Social Responsibility. Recent government legislation means that quoted companies over a certain size and registered in England and Wales must report on social and environment issues, and there is a growing focus on ethical practice in business, illustrated by the development of indices such as FTSE4 Good and the Dow Jones Sustainability Index (The SMART Company, 2005). Research by the Co-Op Bank (2004) revealed that ethical consumerism in the UK is now worth £24.7 billion per year and that ethical spending increased by 16% in 2003. Nine out of ten British workers say their employer’s social and environmental responsibility is important to them – 58% say it is very important to them (MORI, 2004).

The Creativity Agenda The arts also have an increasing role to play in inspiring creativity in staff and humanising a workforce. Arts organisations are engaging in new types of activity with business that seek to embed creativity in the workforce. Activities such as arts-based training, corporate art collections and commissions, artists in residence, arts clubs, forum theatre, performances and exhibitions on site, staff involvement and business volunteering are all valuable additions to the range of mutually beneficial partnerships.

The arts and corporate social responsibility The popularity of business support for education and outreach projects has been on the increase for a number of years. Companies are keener than ever to associate with projects involving young people, schools and communities, particularly those that offer long-term sustainable impact (regeneration, economic development and social impact).

74% of FTSE100 companies currently have a formal CSR policy. This area is likely to become even more important as we follow the trend in the USA, where a MORI poll found that two out of three workers believed a business should be active in CSR. MORI research (1999) also found that 75% of people would be more loyal to an employer that supports the local community.

Marketing-motivated arts partnerships Brand sponsorships are common as a percentage of a marketing budget may be spent on arts sponsorship, if the appropriate opportunity arises (relevant theme/link, target audience, location). Brands often require quantifiable returns. Many are turning to marketing-orientated evaluation techniques to clarify the return on their investment. A number of brands, products and services prefer ‘designer sponsorship’ methods where the business, or its PR company, develops a bespoke project specifically tailored to their own marketing requirements.

Valuation and evaluation As arts sponsorship has grown in popularity, so has the demand for accountability. Whatever promotional practices a company undertakes the cost must be justified, particularly in the dynamic economic environment of today’s business world.

A sponsorship activity can be valued and evaluated – the challenge is to select the most effective and efficient measurement methods. When undertaking such an exercise, it is fundamental that both partners determine and agree their aims and objectives from the outset, follow a tracking process and discuss the results in a debrief once the project has finished.

Through validation and evaluation, the arts organisation and the business can learn from the experience and look forward to more beneficial collaborations in future.

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Art form preferences In the early days of UK arts sponsorship, the era of the chairman’s whim, opera was the most popular vehicle. In the 2002/03 Business Investment in the Arts Survey, carried out by Arts & Business, dance, drama/theatre, music, festivals and heritage achieved the greatest increases in investment, while opera and museums and galleries reported an overall drop in the level of funding they received. The museums and galleries sector saw a £3.8m drop for the year 2002/03 to £21.9m, but was the leading recipient of business investment, contributing 20% of the 2002/03 total figure. In the same survey, organisations receiving business investment of £1m or more were concentrated in London (65%).

Models of arts sponsorship in Europe Business sponsorship of the arts in Europe is relatively new, coming into existence in the latter part of the 1970s when US-owned international corporations began to extend their corporate philanthropy policies into new markets. To date, the countries of the European Union have each adopted various systems of tax encouragement for business donations. However, generally, their legal frameworks for sponsorship remain varied, and in some cases, vague. It is difficult to formulate an accurate comparison between the 25 members and even more so for the extended family of the Council of Europe.

Most members of the European Union have an organisation, similar to Arts & Business, which can offer advice on the circumstances particular to their country.6 The idea of pan-European sponsorship has developed with the introduction of the Euro and the development of pan-European businesses. National cultural sponsorships continue to prevail though.

Those businesses that have established their own foundations tend to pursue more stable, long-term sponsorship activities.

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Case Study: ScottishPower & Ballet Central ScottishPower’s long-term support of Ballet Central has enabled the company, formed from third-year students at the Central School of Ballet, to develop its national touring programme to 50 venues around the UK. Ballet Central provides an educational opportunity which bridges the student-professional gap, show-casing students’ talents to potential employers.

ScottishPower is able to demonstrate its commitment to culture, learning and employment, making dance available, aligned with its own brand, throughout its territories in the UK. Employees and their families benefit from the partnership, which also provides excellent hospitality opportunities for senior and local management, including the Royal Opera House and the King’s Theatre in Glasgow.

ScottishPower has a long history of sponsoring and supporting dance organisations and performances, and has recently supported two scholarships for Central School of Ballet pupils to work with Ballet West in Salt Lake City, a company that ScottishPower sponsored when it visited the Edinburgh International Festival.

ScottishPower Financial, operational and other benefits The partnership meets ScottishPower’s community investment strategy themes of learning and sustainability. “Ballet Central has a real passion for excellence and for learning, which is one of ScottishPower’s core values”.

Dominic Fry – ScottishPower, Group Director Corporate Communications.

Reputation benefits Ballet Central provides a vehicle that matches ScottishPower’s commitment to the cultural life of UK-wide communities, emphasising education and learning values.

Arts & Business has published three guides to evaluating business / arts partnerships. One of them “Did it work for you?” deals specifically with business sponsorship of the arts while the other two deal with community-based arts and business partnerships and arts-based training. Copies are on sale from your local Arts & Business office (see appendix F).

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Market advantage Over 90,000 pieces of branded print have been distributed throughout the UK, raising ScottishPower’s profile. It has also been accredited as sponsor on more than half of all press cuttings.

Employee benefits Employees, their families and friends have benefited from workshops held in the head office canteen, focusing on dance, performance and the arts.

Around 10,000 employees were targeted.

Ballet Central Financial, operational and other benefits ScottishPower’s support underpins core costs and enables Ballet Central to exist and develop its national touring programme. Ballet Central provides an invaluable opportunity to prepare students for life in a professional company.

Reputation benefits Through Ballet Central, the profile of the Central School of Ballet has been raised and the school has now achieved Conservatoire status and degree status for the third-year course accreditation.

Market advantage Significant long-term support has allowed the company to develop its national touring programme to a range of venues around the UK where audiences might not normally see such dance performances.

Models of arts sponsorship in the USA With their tradition of very limited public funding for the arts, it is no surprise that the much of the practice in the development of private sector support for culture has originated in the US. Recent statistics from the Business Committee for the Arts in the US show that in 2003 total business support for the arts amounted to$3.32bn. 51% of companies supported the arts in part from their corporate contributions budgets, reflecting the still powerful sense of the local that is a part of “home town” America and which is now encapsulated in the community investment element of CSR practice. However, 42% of companies also reported that some of their arts support came from their advertising budgets and 30% used their marketing/sponsorship budgets.

In the more questioning corporate climate that has developed in the US, post Enron (itself a great supporter of the arts), there is a definite sense that corporate support of the arts cannot be justified solely on the grounds of community investment.

It must also deliver back to the company and its profits in a more direct way. For this reasons, US arts organisations, like their UK counterparts, are becoming increasingly focused on mutually beneficial corporate partnerships.

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2. Five Steps to Selling and Developing Arts Sponsorship

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We have already seen that approaching business for sponsorship is very different from approaching business for a donation – there is a big difference between selling sponsorship benefits and asking for a gift. We have also explored the various reasons a business may want to sponsor the arts and how sponsorship can form part of a business’ marketing strategy, corporate social responsibility strategy, or both. All this is important, but how should you actually set about selling sponsorship?

Despite the huge variety of arts in the UK, the fundamental approach for selling and developing sponsorship is much the same regardless of your art form, your size or your location. As an aid to clarity, this manual breaks the process down into five stages.

In practice, of course, the process becomes an ongoing activity with new business contacts entering one end of the ‘pipeline’ and, hopefully, emerging as signed-up sponsors at the other.

Process overview 1. Assessing your organisation What do you require? Have you got the resources to seek and manage sponsorship partnerships? Are there limits on whom you should approach and how much should you be prepared to offer?

2. Developing a sponsorship package and proposal What are the projects for which you can obtain sponsorship? What benefits are you able to offer and at what price? What needs to go in a proposal and the covering letter? How much additional information do you need to provide, if any?

3. Researching businesses to approach How can you identify businesses to approach and who, within the business, should you try to contact?

It is important to approach businesses in a targeted way, but how many businesses do you approach at a time and how do you identify the ‘hot prospects’?

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4. Making a successful approach How do you ensure you approach prospective sponsors in the right way and at the right time?

5. Developing a lasting partnership Do you need to make a formal agreement? Once you are working with a sponsor how can you build on the relationship so that it goes on to even bigger and better things in future?

The answers to these questions, and more, are found on the following pages.

STEP ONE Assessing your organisation The first step is to take a careful look at your organisation and identify what you need and what resources (time and money) you have available to look for and develop business sponsorship. You must also decide whether there are any businesses with which it would be damaging for you to be associated and how far you are prepared to go to satisfy a sponsor’s requests.

You should ask yourself the following questions. It is wise to discuss them with members of your board before you begin looking for sponsorship.

What do you require?

When sponsorship works well it can be both satisfying and financially rewarding. However, an arts organisation’s need for money is often far too easily equated with sponsorship. It is sensible to take a balanced view of this source of funding and not see it as the panacea for all your cash problems.

You should recognise that obtaining and maintaining sponsorship is time consuming. It is important to look closely at the other sources of income available to you and ensure you are maximising your returns from all of them. In other words, don’t look at sponsorship in isolation. For example, a theatre may be seeking sponsorship while there are thousands of

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pounds worth of unsold seats every season. In this case, the theatre’s management should consider carefully whether limited resources are better directed towards improved marketing to attract more paying customers.

If you do decide to seek business sponsorship you should be aware of the different types of support they may want to offer you. If you are looking for cash sponsorship then you need to be clear on how you will spend the money once you have it. Some uses of sponsorship cash are more prudent than others:

Project funding In an ideal world, sponsorship should make possible an event or activity that would not otherwise take place. In this way you will be using sponsorship to fund the icing rather than the cake. It ensures your organisation will not be jeopardised by the withdrawal of sponsorship. However, with the erosion of local and central funding it is recognised that many arts organisations may not have the luxury of choice.

Revenue funding If you are dependent on sponsorship for a significant part of your day-to-day running costs you are clearly leaving yourself exposed. A business may withdraw its sponsorship for all sorts of reasons, some of which may be entirely beyond its control. This could put you in an impossible position.

policies and their own preferences take sponsorship decisions. Changes in policy and staff can happen at any time and for many reasons. So, try not to let your organisation or its core activity become too dependent on one sponsor.

Do you have the resources?

Seeking sponsorship should be viewed as an investment. As with all investments, you have to make an initial outlay and there will be a certain amount of risk attached. However, like all investments you can, on occasion, yield substantial returns. To seek out and manage sponsorships you will need to consider:

Time Putting together and selling sponsorship packages takes time. Indeed, once you have attracted sponsors you must spend more time managing the sponsorship and building a strong relationship with them for the future. Don’t underestimate the amount of time required – sponsorship is a long-term solution, and hardly ever a quick fix.

Human resources It is important to determine whether you have enough appropriately skilled people to undertake the extra work generated. The work can be done in a number of ways:

Operating deficits For the reason given above, it is inadvisable to seek sponsorship to fund your overdraft.

Capital spending It is possible to raise money from businesses to fund capital projects. Indeed, following the introduction of the National Lottery this has proved to be an area where many arts organisations have successfully sought such support from the business community.

Do remember that no business is under any obligation to sponsor you. Their principal obligations are to shareholders, customers and employees. Individuals working for a business on the basis of company

• Use an outside fundraiser or agent • Allocate work to existing staff • Recruit voluntary assistance • Enlist the help of your Board • Recruit a paid development officer • Do it yourself

Use of your board and trustees Development boards or committees are perhaps the most effective way of identifying potential sponsors.

A development board is a group of people who support your organisation’s work and who are themselves important or influential people in the outside community. They are generally business

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people (who are particularly useful), academics, politicians, intellectuals and society figures. It is better not to approach a potential funder "cold" and these individuals will be able to get meetings with the right people more easily. They are voluntary, and unpaid, but have the responsibility to help you to identify who might fund your projects. In the USA, such boards are governed by an unspoken rule: Give, Get or Get Off ! In other words, members have to give money themselves, encourage friends to give money or leave the board. Such development boards are essential in widening the network of possible funders of your work in the long-term. They open doors, advise you on your approaches and help to convince funders that your work is valuable. They provide skills, contacts and endorsement. Such committees can be very informal, but they are invaluable in asking for money and seeking sponsorship.

If you do enlist the help of your board in finding sponsorship it is helpful to have the right kind of board in the first place. One or more business people on your board will help you develop contacts in his/her own organisation, as well as in the business world generally. He or she should be able to arrange meetings with the right people more easily than you can. Peer pressure can be an important element in sponsorship. A managing director talks to other managing directors, a finance director to other finance directors, a marketing manager to other marketing managers and so on. Board members from the business world can provide contacts, help open doors and set up meetings for you.

If you do not have any business people on your board and are having difficulty recruiting them yourself, you might consider using the Arts & Business Board Bank. This is a confidential register of business people with specific skills who would like to join the boards of arts organisations.7 You may wish to set up a development subcommittee. Chaired by an existing board member, this committee should be made up of selected influential community members whose sole purpose is to open doors and help raise funds for your organisation. The beauty of this approach is it can be project-based and time-limited making it easier to recruit and motivate the right people than it would be for a longer-term board.

What you choose to do will depend largely on your organisation and its size. Indeed, some of these options may be completely impractical for you.

When making your decision it’s worth bearing in mind that the most successful sponsorship seekers are those who are most committed to their organisation; it is a question of positive attitude.

Once you have decided who will take the job you should clarify responsibilities and confirm the commitments they may, or may not, make on behalf of your organisation. Larger arts organisations should establish a clear reporting line between the fundraiser and the heads of department and the organisation’s head. It’s no good obtaining sponsorship for a project other staff are then unable or unwilling to carry out.

Smaller organisations, which do not have formally constituted boards, can still set up an advisory committee to support the fundraising and other strategic aspects of their work.

The board or advisory committee must be active and engaged in the organisation’s work before they can be tapped for fundraising support. Otherwise, experience suggests that they will only make a very half-hearted effort.

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Arts & Business trains all Board Bank volunteers to understand what is expected of them. In addition, Arts & Business offers a course to help arts organisations make the most of their board, as well as a Board Development Programme.

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Top 10 tips for making the most of your board

What should you consider when choosing a business to approach?

1.

Ensure that you have some board members with valuable contacts as part of the board's composition.

2.

When recruiting, make your expectations clear regarding their role as an enthusiastic ambassador for your organisation.

3.

Be specific about your needs – ‘door opening?’

Selling corporate membership?

Some businesses sponsor the arts because it allows them to associate themselves with an image that will persuade their ‘audience’ to view them or their products in a better light. In other words, they will benefit by association. Conversely, you have to ensure that you don’t damage your image by association with an inappropriate business sponsor. You may feel it is inappropriate and damaging for your organisation to be associated with certain industries, businesses or brands. This is a matter for your board and you are advised to develop a policy on the matter.

4.

Find out about the skills, knowledge and networks of board members – use them. Then co-ordinate the activities of the board members to ensure there is no duplication with you or other board members.

5.

Create a communication system to equip board members with relevant information about the company and its offer – do they need stationery?

Literature?

6.

Ensure there is a suitable platform to enable board members to feed back information and leads.

7.

Think about phasing their efforts. Have you got the capacity to follow up if they all become active at once?

8.

Use Board Development Training when necessary and Away Days are a good way of re-energizing a board.

9.

Hold events to support and encourage their networking and ‘selling’ efforts.

How much are you prepared to offer?

While it is vital to develop a close working partnership with a business sponsor, an arts organisation should never compromise or change its artistic policy solely to accommodate the business’ wishes. It is also important to remember that you should not offer business benefits your audience may see as vulgar or simply inappropriate. However, there are many areas where it is possible to accommodate acceptably the needs of the business. You must decide how much you are prepared to offer.

For example, you may be perfectly content for the sponsor’s logo to appear on the front cover of the programme or exhibition catalogue, however, how would you feel about renaming your event or venue in order to incorporate the sponsor’s name? There is nothing intrinsically wrong with doing so (indeed many successful sponsorships have been arranged precisely on this basis), but you must consider how such an arrangement would reflect on you. There are no rules and it is up to you and your board to decide what is, and is not, appropriate.

10. Say thank you for their action, both in public and private.

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STEP TWO

Identifying projects

Developing a sponsorship package and proposal

You are more likely to succeed in obtaining sponsorship if you can present potential sponsors with a number of clearly identified projects. Here is a limited list of suggestions:

When developing a sponsorship package you are developing a promotional opportunity. To do this you need to define your identity and audience, the project, the benefits and the price.

Describing your identity A business will sponsor you because it wishes to associate itself with a certain set of concepts and ideas embodied by your organisation and the projects you undertake. In other words, your identity matters.

You must be able to describe your aims, objectives, activities and public image clearly and concisely. You should do this using positive language. Avoid words like small, controversial, minority and experimental.

Consider instead, innovative, imaginative, exciting and original. There are many businesses that are keen to associate themselves with the latter concepts and you don’t want to make yourself sound like a risky proposition.

Getting to know and describing your audience A business may sponsor you because it wants direct access to your audience, which happens to correspond with its own. Knowing your audience is helpful in many ways, not just for raising sponsorship, so, if you don’t know already, it’s worth undertaking some research allowing you to understand and describe your audience in greater depth.

In addition to knowing the size of your audience, a business will be interested to know about ages, incomes, occupations, level of education, frequency of attendance and geographical spread. Your Arts Council or Regional Arts Board will have a publication that contains guidance on how to undertake a simple survey. Alternatively, if you have a modern computerised box office system or customer database you may find it already records much of the information.

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• Complete productions or exhibitions • Single performances • Sponsorship of your organisation as a whole • Sponsorship of a season’s work • Education work • Catalogues, books, programmes, CDs and videos • Website • The box office • Marketing and print • Competitions, awards and prizes • Capital developments • Commissions

Sponsorship benefits The benefits package you present to a business must address the ways in which your project can help a business achieve its sponsorship objectives, i.e. the specific benefits you are offering that business.

Remember, they are not making a donation and will expect value for money. To a great extent the benefits you offer will depend on your circumstances and the sponsor’s objectives. You must also bear in mind what has already been said about ensuring the benefits are acceptable to your audience and your board. They are likely to include some of the following: Publicity material Offering a sponsor a credit on all publicity material relating to the sponsored event(s) is very common.

It is usual to include the logo together with an acknowledgement such as “sponsored by XYZ”.

Publicity material can include posters, flyers, season brochures, press advertisements, web site and press releases.

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Programme acknowledgement You may offer to credit a sponsor by placing its logo prominently on the programme (not necessarily the front cover) and a clear credit line “This production is sponsored by XYZ”.

Verbal acknowledgement If possible, it is a good idea to acknowledge your sponsor verbally, as well as in print. The best moment to do this is at the event opening when you can include a reference to your sponsor and how pleased you are to be developing a relationship with them.

Programme advertising A sponsor is frequently offered complimentary advertising space in the programme or catalogue.

This space is used either for a standard advertisement or a specially produced message. It is normal practice to expect the sponsor to provide camera-ready artwork for this.

Complimentary tickets Sponsors may expect a certain number of complimentary tickets allowing them to entertain key customers, potential customers, suppliers and employees.

Priority booking In addition to complimentary tickets you could offer further tickets at a discounted rate (say an extra 60 with 20% off). This can be packaged to be a special discount scheme for the sponsor’s employees and families.

Private views/ performances Private views or performances are a great way for the sponsor to meet and network with customers, potential customers, employees and opinion formers.

Use of hospitality facilities Arts organisations with buildings may have space or special facilities in which a sponsor can entertain. It is normal practice to expect the sponsor to pay for food and drink over and above the cost of the sponsorship package.

Opportunity to meet the artists A business often appreciates “tickets that money can’t buy”, such as the opportunity to dine with the artist or a backstage tour.

Mailing list Subject to the provisions of the Data Protection Act, you may be able to offer a sponsor access to your mailing list. Alternatively you could include information about the sponsor’s products or services in one of your own mailings.

Display space If you have sufficient space, you may be able to offer sponsors the opportunity to have their own display stand. Alternatively you could put information about the sponsor on seats, programmes or web site.

Durable items These are items that have a life beyond that of the project itself. Mugs, T-shirts, calendars, education packs, CDs, catalogues and videos are good examples of durable items. Offering the sponsor branding on such items has the benefit of providing a permanent reminder of the association between your organisations.

Corporate gifts Many of the items mentioned above may be very attractive to a sponsor to distribute as gifts to key customers and staff.

Product sampling Depending on the nature of the sponsor’s product(s), you may be able to offer the opportunity to give free or discounted samples to your audience.

Use of images Some sponsors may wish to use images of your artworks, performers, etc. for their own purposes, e.g. advertising, inclusion in staff news-sheets, etc.

Right to use your logo A sponsor may wish to use your name or logo in its own promotional material or advertising.

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Right of first refusal It is a good idea to offer your sponsor first refusal on other projects you may have available. This is particularly valuable if these other projects are related in some way to the original event.

4.

Always ensure that your sponsors sign off any print work before it goes to the printers. This is to ensure that you are printing their logo/name etc. correctly.

5.

Never give a sponsor a copy of your mailing list.

Aside from breaking the law, you are also giving away a potentially valuable asset. If the sponsor wants to send something to your customers then offer to place their print work in one of your envelopes. Not only will this enhance the direct mail’s effectiveness, but it also ensures that you can oversee everything going to your customers.

6.

Know your arts venue. If the sponsor wants to put up some display space material, you should be able to advise them how and where it should be placed in the public areas for maximum effect.

Likewise with product sampling.

7.

If someone else is going to be making a verbal acknowledgement of the sponsor(s) on your behalf, make sure you write down the sponsor’s name on a note for them and clarify any difficult pronunciations.

8.

Remember that, while some sponsors might be happy to share crediting, hospitality space etc. with other businesses that are not their competitors, other sponsors would like a certain level of exclusivity (for which they should be paying extra). Always let your more important sponsors know of other companies who may be coming on board before you finally sign up the new ones.

9.

Be realistic – don’t over egg the potential of the benefits you can offer (you are unlikely, for instance, to be able to provide the sponsor with access to all their customers nation-wide!)

Media coverage You cannot guarantee media coverage. However, you should offer to work closely with your sponsor to maximise coverage and accreditation of their sponsorship.

Website links You can provide links from your website to that of the sponsor. Clearly it is of benefit to you if you can negotiate a reciprocal agreement.

As you can see, there is a long list of interesting and valuable benefits, which you can offer the business partner. Do not, however, simply promise a potential sponsor anything and everything. Make sure you can deliver what you offer. Everything you offer should be included in the price and do not underestimate the value of the association with your event or programme.

Sponsorship benefits dos and don’ts 1.

Always ensure that the benefits you are offering cost you less to provide than the income you are receiving in return (remember that a free ticket given as a benefit could represent a very real cost to you of foregone income).

2.

Always talk about the benefits rather than the features – in other words talk about the usefulness of the benefits on offer (e.g. Not “You will receive 10 complimentary tickets” but “You will receive 10 complimentary tickets which you can use for client hospitality, as prizes in a customer competition or as a staff reward.”)

3.

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Always make sure that any tickets that you provide to your sponsors are used. An empty seat in the auditorium not only looks bad and is a waste of potential income for you but also, more worryingly, means that that sponsor is not fully engaged with the partnership.

10. Always ensure that you provide the sponsor with everything you said you would, when you said you would and how you said you would. A bad reputation is hard to overcome. Make sure you deliver!

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Pricing It is essential to set a price for the project, as it is impossible for any potential sponsor to evaluate the package if he/she doesn’t know the price.

Remember that you are selling a package of benefits; you are not holding out a begging bowl. Those benefits have a value to the sponsor for which they are prepared to pay. Too often, arts organisations equate cost with price when instead they should be equating value with price.

The WRONG way to do it Cost of staging event Ticket sales Donation RAB subsidy SHORTFALL Therefore, price of sponsorship is

£12,000 £8,000 £500 £1,500 £2,000 £2,000

entertainment facilities, advertising space in the programme and any identifiable costs that will arise as a direct result of the sponsorship (e.g. printing a special insert about the sponsorship for the programme).

However, it is more difficult when you begin to consider the value of less tangible items such as logos on print, programme acknowledgements and selling the use of your mailing list.

Another item that is very easy to overlook is that of servicing and evaluating the sponsorship. This will impose extra demands on your time and you should include an allowance for it in the price.

When negotiating with a potential sponsor you may be able to talk about the ‘going rate’ for similar projects.

Finally, if you are registered for VAT, you must charge it on the sponsorship, even if it is sponsorship in kind (see section 4).

Clearly, in this example, the arts organisation needs an extra £2,000 to make the project break even.

However, this does not automatically mean the price of sponsorship is £2,000. Indeed, the value of the business benefits on offer may be more, or less, than £2,000.

The proposal

So, if you need £2,000 you must offer benefits that the sponsor will value to at least £2000 (recognising their concept of value). You may be in a position to offer benefits that have a greater value than the amount you need just to break-even. If this is the case then do it.

A common fault is that arts organisations often include too much detailed information in their initial proposal. Generally, an ideal proposal is concise and well presented on no more than two sides of A4.

Above all, it should be completely clear to the reader who you are, what the project is, what the business benefits are and how much you are charging.

Throughout your dealings with the company you should appear confident, professional, businesslike, flexible and low risk. Your initial proposal is the perfect opportunity to get these messages across.

It must be admitted, however, that putting a price on the value of business benefits is often easier said than done. Pricing is not an exact science. It is just as important not to undersell yourself, as it is not to oversell yourself.

There are some business benefits to which you can attach direct monetary values. For example, if you are providing 40 complimentary tickets that would normally sell for £14 each you can easily ensure the total price of these (£560) is included. Similarly, you can include the normal hire price of your

The purpose of a written proposal is to secure a meeting. It is highly unlikely that a business will read your proposal and immediately agree to the sponsorship without meeting you at least once.

A sample proposal may be found in Appendix A. It is intended as a general guide and you must not only take your own circumstances in to account when writing your proposal, but also use your creativity to produce a document targeted to your needs and those of your prospective sponsor.

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The following information should be included: Who you are A short paragraph briefly explaining who you are and what you do will suffice.

Your supporters Highlighting your existing supporters is a good way of raising your credibility. Your supporters could be funders, celebrities and, most importantly, previous or existing sponsors.

The project Briefly describe the project for which you are seeking sponsorship. Avoid using names and terms, which, although well known in the arts world, may not have the same significance for a business reader. For example, the word ‘access’ has a clear meaning in the arts world but may mean something quite different to a business reader.

Your audience A profile of your audience (or potential audience) helps the business understand more about what it is you do. It will also highlight the similarity between your audience and their customers. If you have reliable statistics use them.

Publicity and marketing Show your reader how you intend to promote the project. Don’t just talk about the quantity of print; also highlight its quality and method(s) of distribution.

Sponsorship benefits List the proposed benefits, being as specific as possible.

Do ensure you explain the benefits rather than just give a list of features, i.e. make the link for the reader between the feature (60 complimentary tickets) and the benefit (60 complimentary tickets allowing you to entertain key clients). In short, say what’s in it for them.

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Hospitality Outline the opportunities for entertaining clients, prospective clients, staff and opinion formers.

(Note there should be a separate agreement for food and drink.)

The price Simply state the price of the sponsorship (plus VAT, if you are registered). Don’t be tempted to send a budget to the business. Remember, you are selling a package of benefits of commercial value, not asking for a contribution towards costs.

The covering letter The covering letter should be concise (no more than one page) and needs to say why your proposal is right for the business you are approaching. If you can’t answer this question then the business is unlikely to do it for you. Remember, you are trying to make it easy for them to say “yes”, so make the connections for them and don’t assume the benefits of your project are so obvious that they will instantly be apparent to the reader.

A sample covering letter may be found in Appendix B. Notice how the letter ends with “I will contact your office in a few days time...”, rather than stating “I look forward to hearing from you”.

Inserts and attachments It is a good idea to enclose one piece of print from a previous production/exhibition, (particularly if it carries a sponsor credit) or your promotional brochure, if you have one. A visual aid such as this can add much to your written approach, but be careful not to overdo it.

By sending too much you run the risk of hiding your sales message under a blanket of irrelevant information.

Press notices, posters, leaflets, photographs and CVs of the people involved and other supporting information may be taken along to the meeting. A bulky package of information can be daunting for the recipient who may immediately decide that sponsoring you already looks too much like hard work. At this point, you are striving for quality not quantity.

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STEP THREE Identifying companies to approach It is essential you approach all potential sponsors in a targeted and well-informed manner. In order to do this and maximise your chances of success you must do some research before you even think about picking up the ‘phone or writing a letter.

Developing your own information bank It is helpful to start with a list of around 50 local businesses (including national or international businesses with a local presence). These can be identified through your own knowledge of the area, local business bodies, the Yellow Pages, or by exploring the area on foot or by car. The purpose of your subsequent research will be to gather sufficient information on each business to approach them in a targeted way.

Consider opening a file on each business as you gather information about it. Later, once you have approached the business and begun negotiations, you will be able to update the file with further information, contact names, records of correspondence and conversations and any agreements made. In this way you will build up a comprehensive bank of business profiles which are not only invaluable in the search for sponsorship, but also in fostering lasting partnerships with your existing sponsors.

You can gather information helpful in preparing your business profiles from: Existing contacts Working with your colleagues and board, draw up a list of all your business contacts. Include people you do business with, have met at recent gatherings and all those who have offered you some form of support in the past. Using contacts such as these can often be a powerful way of gaining introductions to potential sponsors. It also means you won’t have to approach them ‘cold’.

Brainstorming Using the same group of people ask each participant to suggest names of businesses or brands which may, in their opinion, hold sponsorship potential for the project(s) you have available. The aim is to gather as many names as possible, which will help direct your subsequent research. You should not stop to discuss each suggestion as it is made; rather, you are aiming to generate a large number of possibilities. The suggestions can be prioritised at the end of the session leaving you to research the best in more detail.

Local reference library Most libraries have a number reference books and directories which will be of help, for example: • The Times 1000 • Key British Enterprise • Jordan’s Regional Surveys • Kompass Regional Sales Guides • The Marketing Manager’s Yearbook • Who Owns Whom • Who’s Who • Directory of Directors These will contain information on most British businesses including their markets, products, employees, turnover, directors, etc. Libraries may also have local business directories or directories of specific industries or professions. Do enlist the help of the librarian who may be of considerable assistance in uncovering other sources.

The Internet In addition to a company’s own website, there is a huge quantity of business information available on the Internet. If you don’t have access to the Internet yourself, visit your local library or internet café.

Arts & Business The Arts & Business Annual Report contains a list of Arts & Business members, details of which can be accessed on www.AandB.org.uk.Your local Arts & Business office may also have a modest resource containing some of the publications listed above.

Some Arts & Business offices also produce local Business Digests, to which you may subscribe

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for a fee. By joining your local Arts & Business Development Forum, you will benefit from regular events that will help you build your knowledge base.

Local business bodies Most towns have Chambers of Commerce that produce a newsletter and list of their members and should be able to give you advice on local business activity.

Many national business bodies have regional or local divisions (e.g. CBI, Institute of Directors and the Chartered Institute of Marketing) also, at a more local level, you may be able to make contact with Rotary Clubs and Round Tables.

Try to meet with the secretaries of these groups to discuss how best you can work together. It may be appropriate for you to make a short presentation at one of their meetings to explain what you do and the benefits of sponsorship. You should use such an opportunity to engage their interest not to discuss your financial problems and then aim to develop specific options with interested individuals.

Newspapers and business periodicals From local and national newspapers and business magazines you can glean all sorts of useful information. You will see who’s advertising, who has recently launched new products, merged, moved to the area, announced good trading results, who is about to celebrate an anniversary, etc. This information can help you assess how a business or brand wishes to communicate itself and its image and how profitable they are. On this last point, it is not a good idea to approach a business solely on the basis that they are making healthy profits.

Remember, businesses have no obligation to sponsor and will resent you suggesting it simply because they are making money.

Annual reports Annual reports can provide much information on financial performance, senior directors, company mission and business objectives. They may even contain specific reference to community involvement and sponsorship. Businesses which produce an annual

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report available for public consumption (usually the larger ones) will send you a copy free on request.

Programmes The programmes and publicity produced by other arts organisations list the names of their corporate supporters and sponsors; annual reports will contain similar information. You will find this helpful in building up a picture of those businesses with a tradition of associating themselves with the arts, and the art forms with which they are involved.

Selecting target businesses The purpose of your research is to enable you to select those businesses most likely to sponsor you and to uncover information helpful in targeting your approach to them. You should aim to approach no more than five or six prospects at a time. Any more, and you are unlikely to have sufficient time to do the all important follow-up.

In selecting prospective sponsors ask yourself these questions to assess their suitability as a good target: • What is the identity of this business or brand and to what extent might it be similar to your own identity?

• Who appear to be the business’ target customers and to what extent might their audience be similar to your own?

• What is the present level of marketing and PR activity for the business or brand and how do they currently promote themselves?

• Is the business already familiar with arts sponsorship or does it presently use other promotional tools? What kind of projects have they undertaken in the past?

• When is the start of their financial year? How long before this do they allocate sponsorship budgets? Do they decide on all sponsorships at a particular time of the year or do they look out for opportunities as and when they arise?

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• Is the nature of their business in any way controversial (e.g. perceived as noisy, unethical, hazardous or polluting) and would this, in turn, reflect badly on you should you enter into a sponsorship partnership with them?

Once the systems for research and contact building are in place, selling sponsorship should become an ongoing process, where there is a ‘pipeline’ of contacts, potentials, hot targets and those ready to sign-up.

• What is their trading performance like at the moment?

Method of approach

• Are there any particular reasons why you may be able to approach them? For example, have they recently moved to the area, taken over another business or will they be celebrating an anniversary next year?

• Do you, or your board, have any personal contacts with the business and at what level?

Questions such as these will not only help you decide which businesses to target, but also, what benefits you should be offering and the style of approach. You must be able to answer the question “Why is this sponsorship right for this business?”. If you don’t know the answer to this you can hardly expect the business to know either!

STEP FOUR Making a successful approach Timing your approach You should not underestimate the lead-time required to sell a sponsorship package. As a general rule, you should be approaching potential sponsors at least six months in advance of your project starting. However, many larger businesses plan even further in advance, particularly for big sponsorships. It is not uncommon for a business to take sponsorship decisions more than a year before the project is due to start, thus allowing plenty of time to plan their own complementary activities and ensure all their sponsorships are in line with their overall marketing and communication objectives. Sponsorship can happen more quickly, but even then, 6 months is probably the minimum. Don’t make your task more difficult by leaving your approach to the last minute.

Generally, throughout your dealings with the business you should appear confident, professional, businesslike and low risk. Businesses are very sensitive about exposing themselves to risk and you should strive to reassure them about this. A sloppy approach will make you look unprofessional, unnecessarily risky and the business will find it very easy to say “no”.

One thing you should never do is send out a circular addressed “Dear Sir / Madam”. This approach not only makes you look bad, but also, it does not work.

The following approach is recommended, and remember, you should aim to approach about five businesses at a time: Determine whom to contact You must discover the name and position of the individual within the business with whom you need to deal. The simplest way of doing this is to telephone and ask.

It is best not to ask the switchboard operator. Instead, ask for the name of the Sponsorship Manager, Community Affairs Manager, PR Manager, Marketing Manager or Brand Manager. Once you have the name, ask to speak to him or her. Try to address the person who makes the decision (not necessarily the most senior).

Speak to the contact If you are able to get through to the relevant executive you need to do two things. First, you must ascertain whether or not you are speaking to the right person and second, if it is the right person, you need to tell him/her briefly and concisely about your sponsorship opportunity, and ask if you can send through further details. If you can also find out more about their needs and objectives, this will enable you to further tailor your proposal.

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Write to the contact Send your proposal and covering letter (see step 2) addressed personally to the contact. You may also wish to include a previous piece of print or your promotional brochure (if you have one), but be careful not to send too much additional information.

• Do take with you good examples of your print to supplement the necessarily brief information you have posted.

The objective of the written approach is to inform the business about the project, explain what’s in it for them and to secure a meeting.

• Make plenty of eye contact right from the start.

Make sure you deliver the all-important firm handshake.

Follow-up telephone call Wait a week or so and then telephone to check that your proposal has arrived, answer any immediate questions and to set a date for a meeting to discuss it in detail.

• Begin the meeting by talking about them and not about you. This gives you the chance to find out more about them and an opportunity to relax.

Put yourself in their shoes It is important to put yourself in the business’s position. This not only allows you to target your approach, but also to anticipate any concerns and objections before they arise, thus giving you the opportunity to prepare a range of possible responses in advance.

When it comes to sponsorship it is usually quite obvious to the business what’s in it for you. What is perhaps less obvious is what’s in it for them. So, throughout your approach, do remember to think about the sponsorship from their perspective – it is you that is selling to them, not vice versa.

The meeting If you are fortunate enough to arrange a meeting, you know you have raised interest and you are in a reasonably strong position. If you are unfamiliar with meeting busy executives, you may find the following points enhance your chances of getting it right: • Make sure you have done sufficient research on the business and you have thought through the reasons why your sponsorship proposal is right for it.

• Do take with you an expanded version of the sponsorship proposal you posted to them.

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• Present yourself well and dress according to their conventions.

• Don’t assume a high level of knowledge on their part concerning your activities or about arts sponsorship in general. If necessary, help them make the connections. However, do be careful not to patronise.

• Try to appear relaxed and confident, even if you feel quite the opposite.

The meeting is a valuable opportunity for you to ask for information that your research may not have been able to uncover and to check your assumptions.

For example: • What are their sponsorship objectives?

• Are they planning new marketing/PR drives?

• How do they assess sponsorship proposals?

• How are decisions concerning sponsorship made?

• How long have they been sponsoring the arts?

• Are they new sponsors?

• Are they aware of Arts & Business New Partners8 and how this programme could help?

• Which of their previous sponsorships do they view as being most successful and why?

Do listen to the information you are given and be prepared to modify your proposal accordingly. You need to think quickly and be prepared to discuss alternative ideas and projects. Many sponsors find that their most successful projects evolve during such discussions.

See section 5 for information about the Arts & Business New Partners programme.

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Finish the meeting with a clear agreement on what happens next. Don’t let it end with the equivalent of “I look forward to hearing from you”. Ask whether they require any further information from you. Would they like you to develop a more comprehensive proposal? Would they like you to meet anyone else in the company? Try to determine the schedule for decision-making. Should you plan another meeting to negotiate the details? Invite them to come and see you and your work. Establish who will next contact whom and when. Once again, try to keep the initiative as it’s in your interest to instigate the follow-up.

Handling objections When discussing your proposal with a potential sponsor, concerns and objections may be raised for many reasons. In such cases, it is easy to become defensive, even negative, and to jump to the wrong conclusion that the whole discussion is in danger of falling apart. In fact, you should see objections as a positive indicator of attention and interest.

In responding to objections you need to identify the underlying concern and respond in a positive, open and truthful manner.

Start by either re-stating or emphasising it (e.g. “Yes I’m sure that must be of concern to you”). In doing this, you are checking your understanding of their concern and showing your willingness to take their point. If you happen to disagree with what they are saying, don’t start your response by justifying yourself or by being defensive. This is unprofessional and your defensive response may only serve to reinforce their original concern.

If an objection is general or vague, you need to make it specific by questioning the potential sponsor further. For example, in response to a prospective partner who says “The price is too high”, you might respond (having first acknowledged their concern) by saying, “It would help me to address this if you could specify with what you are comparing our price?” In this way you are testing if the sponsor is genuinely

concerned about your price, or, if he/she is trying to deflect you, put up a smoke screen, or hide a more important problem. You are also starting to pinpoint the precise concern and putting yourself in a better position to respond.

By using this approach you should be able to determine whether the prospective sponsor is stating a genuine objection, which can be overcome, or a condition. A condition is a concrete reason for not buying your sponsorship package (e.g. if you are unable to provide specific benefits or if the content of the production or exhibition is unsuitable).

On occasion, a condition may be serious and insurmountable and the business will not buy the sponsorship package. Under such circumstances it is best to recognise this fact and return in future with a new proposal, which overcomes the condition.

After the meeting and follow-up Reinforce the positive impression you made at the meeting. Always write and say thank you for their time and interest (even if the outcome of the meeting was not as positive as you expected). It is also worth using the opportunity to summarise the points discussed and any agreements made.

Your approach will yield either a positive or negative result. If it is positive you should document the agreement either by letter or perhaps a formal contract (see Step 5.).

What happens if they say ‘no’?

If you get a negative response, you need to discover politely why they said “no” so that when you approach them again in future you will be in a better position to overcome their objection(s). On no account should you challenge their decision not to sponsor you. Stay in contact with the business by inviting your contact to an exhibition or performance. They may not sponsor you this time, but it’s well worth cultivating a little for the future.

There are nine ways to say no and not all of them are completely negative:

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1.

2.

3.

4.

5.

6.

7.

8.

9.

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No, too much No, too little No, I’m the wrong person No, not the arts No, you are too late No, you are too early No, not now or not yet No, not there but in another location No!

3.

Take particular care where you decide to place any reception within an arts venue. Sometimes it is inappropriate for the image of that venue to have areas cordoned off for private parties.

4.

Check the acoustics of the building – an inaudible speech can seriously detract from the evening.

5.

Ensure that whoever is doing the catering knows the space. Discuss with them how best to serve the food and drink, when and from where.

6.

As the name suggests, cultivation events are about developing relationships with potential sponsors – cultivating new contacts for the future and strengthening your relationship with existing and previous sponsors. There is more to say about cultivation events than space allows here, however, here are a few top tips:

Make sure that you have sufficient staff to cover the event and to undertake all the jobs that need to be done. Don’t do these jobs yourself – you have more important things to do than hand around canapés! Ensure your members of staff are identified with a badge.

7.

Briefings – everyone connected to the event (the staff, the speakers, etc) need to be fully briefed on the objectives of the event, its schedule and the names of the VIPs coming.

Top 10 tips for running a cultivation event

8.

Plan carefully the distribution of any ‘take away’ literature that you would like your guests to have – think about what that literature should be and the best way of ensuring that your guests take it with them.

9.

By the end of the event, every guest ought to know more about your organisation, your plans for the future and what they can do to help you.

Only 4 and 9 make it difficult for you to go back to the business at another time with another proposal.

You have the opportunity to overcome all the others next time you approach the business.

Cultivation events

1.

2.

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Make sure the invitation looks enticing! People tend to accept an invitation if they are interested in the place, the event and/or the other people who are going to be there. So choose all three with care. Bear in mind that one of the great strengths of the arts is that they can offer an experience unlike anything else – something as simple as having a cultivation event on a stage, for instance, with the stage lights on, can leave a very positive and memorable impression.

Plan a schedule carefully for the event itself. If it is to be centred around a performance then the length of that performance should obviously influence your schedule – on the whole people want to go home after about 10:30pm. In general either hold the event between 6pm and 8:30pm (and make sure the invitation shows that the event finishes in the early evening) or plan one for the whole evening.

10. … and most importantly… follow-up all attendees with a letter or telephone call, within the week!

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STEP FIVE Developing a lasting partnership Making a formal agreement It is always a good idea to confirm details of the sponsorship in writing. This is to protect both you and your sponsor in the event of unforeseen circumstances arising. However, its main benefit is to make it absolutely clear what each party expects of the other. Businesses enter into agreements on a regular basis and they may volunteer to produce the document. However, if they don’t, your suggestion to do so will only serve to enhance your image of professionalism.

The agreement can either be a letter of agreement or a formal contract. Examples of both are included in Appendices C and D. These examples are intended to give general guidance only and you are advised to seek professional advice if you are at all unsure. This is particularly important where large sums of money are involved and/or the details are complex and potentially open to misunderstanding by either party.

Generally, the agreement needs to cover the following key points: • A clear description of the project, including venues and dates • The sponsorship payment, method of payment and date(s) when payment(s) is/are due • The benefits which you will provide for the sponsor (being as precise as possible) • Any restrictions on the sponsorship (i.e. what is not included) • Arrangements for cancellation or postponement

Project management Good project management is ensuring that everybody knows what is expected of them and ensuring they do it. All those involved in the sponsorship must know what needs to be done, to what level of quality, within what amount of time and for what cost.

It is wise to ensure that everyone in your organisation knows of the sponsorship and what the business is trying to achieve. However, there needs to be one person within your organisation who is responsible for actually delivering the sponsorship benefits. It is a good idea for this individual to draw up a project timetable that shows when all the activities need to be undertaken, and who is responsible for ensuring they are done. Discuss the timetable with your sponsor and ensure they understand the actions they have to complete and give them a copy of it.

Naturally, you will retain control of all artistic decisions. However, it may be that the sponsor is willing to take on some of the work directly associated with the sponsorship. For example, liaison with caterers may best be done by the sponsor. Similarly, you may choose to take joint responsibility for media liaison and print design.

It’s up to you both to decide who is best placed to do what, but do ensure that responsibilities are crystal clear and the sponsor is given the opportunity to participate in decisions which affect them.

Communication is key to success. It may be appropriate for you to hold regular progress meetings with those involved. It is to your advantage to keep the sponsor involved and interested, so take the initiative in keeping them up-to-date with developments. If a problem does arise, it is best to discuss it with your sponsor sooner rather than later.

Try and keep more than one person in the sponsoring company interested and involved. Too often sponsorships falter and business supporters are lost due to personnel changes.

The future It is always easier to sell more to an existing customer than it is to go out and find a completely new one.

This is just as true for organisations selling arts sponsorships as it is for a high street shop selling groceries. With this in mind, it is clearly important to cultivate a lasting partnership with your sponsor so they come back time and time again. One of the main reasons a sponsor will come back is because

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they had a beneficial and enjoyable experience the first time. Good project management and communication are obvious ways to ensure this happens, however, it is always a good idea to ensure you have some way of evaluating the success of the sponsorship.

Try to negotiate long-term sponsorship agreements rather than one-off projects. A three-year deal is good for the sponsor as well as for you.

At the end of the sponsorship, do provide the business with a short report on how well things have gone. Include details of audiences achieved, press coverage and examples of the items of print that were produced. In other words, ensure the business appreciates what they got out of it. The report doesn’t need to be long and you can use the opportunity to tell them about future opportunities.

Some businesses may require a more formal evaluation of the sponsorship; indeed you should encourage them to do so (see section 3).

Finally, continue to keep in touch with the business.

Invite your contacts and their board members to cultivation events and keep them up-to-date with your work and other sponsorships you enter into.

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3. Evaluation

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What is evaluation?

In response to demand, Arts & Business established a new Research, Evaluation & Information team.

The team work towards deepening the collective understanding of the value of business-arts partnerships. Collecting evidence plays a key role, and the team are working towards evaluation techniques that can be applied to measure the degree to which an arts project’s objectives have been met.

Arts & Business has produced evaluation guides for the arts and business audience9. Some evaluation methods are common to all the guides. For example, the need to agree clear objectives, to identify the aim of the partnership and the development of key indicators that will show what has changed between the start and the end of the project. But each project is unique and the guides should be adapted according to the nature and size of the project.

Evaluation of any business-arts project is an attempt to identify the degree to which the project has met the objectives agreed by its stakeholders. The success of a project can be judged primarily on the changes it makes and the impact it has on the partners, their people and their activity. That is not to say that a project needs to meet all the set objectives, rather the evaluation process will help judge the strengths of the project.

The actual process of undertaking evaluation can be valuable too, as it contributes to effective project management and can help the partner organisations learn, and improve their practice.

The benefits: • You can use the evaluation to report to funders and stakeholders – demonstrating that you are making effective use of your resources and are exploring imaginative new ways of working and raising money

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• Evaluation can show the business partner that its investment in the project was successful and encourage it to make additional investments in the arts • The process of evaluation will help organisations identify and obtain information that might otherwise not be generated or could be lost.

Reliable and comparable information can be used by the organisation, and others, to plan future projects.

Some key terms Aim This is the prime purpose of the project and the changes you hope to achieve as a result of your work.

Objectives These are the specific things the partners want to achieve, and can be seen as the steps to be taken to achieve the overall aim. Objectives describe the areas of activity you will undertake to achieve your aims.

Objectives should be SMART – Specific, Measurable, Achievable, Realistic, Time-bounded Objectives can relate to outputs as well as outcomes and impact

Outputs Outputs are quantifiable, such as the number of people attending, number of press articles, webpage hits etc.

Outcomes Outcomes consist of all the changes and effects that happen as a result of your work (intended and non-intended).

Impact The impact is the long-term change – the broad, longer-term effects of your work.

Arts & Business Evaluation guides are designed to give practical advice to the arts and can be accessed from the Arts & Business web site (www.AandB.org.uk). They include the publications “Did it work for you? Evaluating business sponsorship of the arts” “Did it make a difference? Evaluating community-based arts and business partnerships?” “Did it deliver? Evaluating art-based training inside business.”

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Measures of success Measures of success are there to tell you how successfully your objectives have been achieved.

Measures of success form part of the project monitoring system. Each objective needs at least one measure of success.

Data collection For each indicator you need to think about how this data will be collected and stored, so it can be analysed at a later stage.

Target benchmark You might want to set targets for some of the indicators (primarily output indicators and ‘hard’, measurable outcomes). This may be based on your own previous experiences or the experiences of other organisations. Benchmarks can also be set by conducting a pre-project survey to establish a ‘baseline’ before the actual project takes place.

The Arts & Business guides provide you with further suggestions as to how to go about evaluation.

It is recommended that the evaluation of arts partnerships is ongoing and the process is one that is embedded into the organisations project management style. If the project is large enough it may justify a conversation with your partner as to the use of external experts. Freelance evaluators can be approached with project brief outlines. In such instances it is crucial to engage with an evaluator before the project commences to ensure all aspects of the project can be explored.

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4. Sponsorship and Taxation

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Tax is a complex and ever changing area. You are strongly advised to take professional advice. The following paragraphs are for illustrative purposes only.

Cash sponsorship Corporation tax and income tax implications In general, a sponsorship payment will be deductible in calculating the trading profits of a business if it is: • Wholly and exclusively for the purposes of trade; and • Revenue as opposed to capital expenditure.

Where the sponsorship itself meets these criteria, associated expenses, such as those of commissioning an evaluation of the project, should also be tax deductible.

Note that expenses relating to client entertaining are not usually tax deductible for the business.

From the perspective of the recipient arts organisation, if it provides a broad range of services to its sponsors, it may find that the income it receives is taxable, it may be necessary to consider the use of a separate trading subsidiary.

VAT implications The VAT treatment of sponsorship arrangements can be complex. HM Revenue and Customs explain their approach in reference Notice 701/41 (March 2002), which can be found on their website; www.hmrc.gov.uk.10

may lead to a liability to register for VAT with effect from the date of receipt and to account for or charge VAT on the sum received.

Where a sponsorship payment is received from a business in return for commercial benefit arts organisations registered for VAT must charge VAT at the standard rate of 17.5% on the service and raise a tax invoice. If a fee is agreed without reference to VAT then the amount is regarded as inclusive of VAT. It is, therefore, essential that the VAT position is agreed between you and your sponsor before the payment is made.

Arts organisations with a turnover below the VAT registration threshold are not required to register and therefore do not have to charge VAT on their sponsorships.

Sponsorship in-kind Sponsorship in-kind arrangements are becoming increasingly popular. These involve the business providing you with goods and services in lieu of cash in exchange for sponsorship benefits.

Corporation tax and income tax implications The corporation tax and income tax implications of the sponsorship in-kind are the same as for cash sponsorships (see above). Broadly, where the arrangement has a genuine commercial purpose and no capital benefit is obtained, the cost of supplying the goods or services will be tax-deductible for the business.

VAT implications Although many arts organisations have charitable status, this does not exempt them from the requirements to charge VAT where appropriate.

They are liable to register for VAT in the same way as other traders if their taxable turnover exceeds the registration limit (although there may a registration issue if the arts organisation can be considered as a voluntary organisation because of the nature of its board – please seek up to date professional advice on this area if you are concerned). A large sponsorship payment in excess of the VAT registration threshold

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VAT is chargeable by the arts organisation on the market value of goods and services provided under a sponsorship in-kind arrangement. The VAT will be recoverable by the sponsor subject to the general rules for cash sponsorship.

Cases where VAT has not been charged, or charged on an incorrect market value, are increasingly being picked up by Customs & Excise in their routine visits to arts organisations who then become liable for any additional VAT due.

HM Revenue & Customs have extensive information concerning the tax implications of charitable support and charitable taxation on their website: www.hmrc.gov.uk

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5. Arts & Business

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Arts & Business’ vision is to help build communities by developing creative partnerships between business and the arts.

Arts & Business was founded as the Association for Business Sponsorship of the Arts (ABSA) by a group of far-sighted business leaders in 1976. Since then, business investment in the arts, in cash terms, has grown from £600,000 to over £120 million in 2002/0311.

In 1999, ABSA became Arts & Business to reflect the fact that partnerships between business and the arts now encompass more than just sponsorship.

However, despite this diversification, sponsorship remains at the core of business/arts partnerships and therefore at the centre of Arts & Business’ work.

Arts & Business provides a wide range of services to over 450 business members and more than 1,000 arts professionals through the Arts & Business Development Forum. Individual business people share their skills with the arts through our Professional Development Programmes: Board Bank, Skills Bank and Mentoring. Following the launch of Arts & Business New Partners, encouraging business to try something new with the arts, Arts & Business is now leading the way to find more ways of developing the business/arts partnership and embed the arts in every level of business.

Arts & Business is an independent organisation running its programmes from a head office in London and through a network of offices across the UK12. It is also a member of the European Committee for Business, Arts and Culture (CEREC)13.

Working with Arts Council England, Arts & Business has designed a package of complementary programmes to help embed the arts into business

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and encourage more private sector investment in the arts. Together all these programmes help foster sustainable and multi-faceted partnerships between business and the arts. Full information can be obtained from your local Arts & Business office or from the website. The main programmes are summarised below.

Board Bank Arts organisations need to be governed well in order to flourish. A functioning board sets the goals for the organisation and manages its long-term development. The Board Bank is a free service to arts organisations, helping them to recruit gifted and enthusiastic individuals from the corporate sector to serve as non-executives on their boards.

If your organisation is seeking to invigorate its board with the addition of business skills, you can apply to the Board Bank for free access to a wide range of potential board members with diverse business skills who have been trained in good board practice.

Skills Bank The Skills Bank Programme gives arts organisations access to free specialist business advice. We recruit talented business managers from the corporate sector who can offer their time and expertise on short-term projects that help arts organisations enhance their managerial capabilities and enable them to grow strategically. The Skills Bank also allows arts managers to gain new specialist skills, which can enhance their own career prospects.

Arts organisations and business managers who apply to the programme follow a rigorous process of recruitment, induction, matching, monitoring and evaluation to ensure that the projects are a success.

The full business investment in the arts annual survey is available from your local Arts & Business office (see appendix F).

For the full Arts & Business address list please appendix F, or our website at www.AandB.org.uk.

See www.cerec-network.org.

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Mentoring Many people at some time in their lives benefit from the experience and knowledge of a mentor, formally or otherwise. The Arts & Business Mentoring Programme provides free, one-to-one management development support for middle to senior arts managers, helping them to reach their full potential. We recruit mentors from the corporate sector, who can help arts managers to develop their skills, build their confidence and selfesteem, rediscover motivation and avoid burn-out.

Mentees benefit from regular meetings with their mentor and are encouraged to focus on their own personal development goals and issues.

Our business mentors have at least five years senior management experience and extensive experience of developing people and mentoring.

If you or your organisation would like to join the thousands of arts organisations who have already benefited from the Board Bank, Skills Bank and Mentoring programmes, please contact your nearest Arts & Business office.

Arts & Business New Partners Arts & Business New Partners is a cash incentive programme to encourage business to try something new with the arts. This can range from improving a business’ marketing and communications to motivating and stimulating employees to supporting the local community. If a business is already working with the arts, New Partners can extend the partnership. If a business has never worked with the arts, New Partners can open the door to a world of opportunities.

New Partners is one part of A&B’s strategy to embed the arts more deeply into individual businesses. We believe strongly that a business

will derive the maximum benefit when its partnerships with the arts demonstrate how they achieve key business objectives. The ultimate goals are to show the power of the arts to work for business and to increase business investment in the arts.

The application process is straightforward, and the maximum investment is £50,000. All proposals need to show a cash and/or in-kind sponsorship commitment from the private sector. Each Arts & Business region has its own annual budget for investments and there are regular regional deadlines throughout the year.

We invest in partnerships that show: • Clear benefit to the business and arts partners • Commitment by business to developing new areas of activity with the arts • Commitment by business to maintaining and developing current arts activity • Value for money • An ability to manage and deliver the partnership • Appropriate plans for evaluation and follow-up • The prospect of a sustainable relationship between both parties.

Further information is available on our website (www.AandB.org.uk) or from your nearest Arts & Business office (see appendix F).

The Development Forum Arts organisations wishing to keep in close contact with Arts & Business should join the Development Forum. There are currently over 1,000 members of the Development Forum across the country, who pay a small annual fee in exchange for a variety of benefits, including networking opportunities at regional meetings and events and priority information.

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Appendices

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Appendix A

Sample proposal This sample proposal is meant to be a general guide. It is intended that readers will use their own creativity and particular circumstances to produce their own unique document that effectively sells their project.

Sponsorship Proposal The Oak Tree Theatre Established in 1879, the Oak Tree is one of the major repertory theatres in the Midlands. Its prime city centre site has seen major redevelopment over the last two years, which has linked the new shopping mall and car park to the theatre. Under artistic director, Joanna Darling, the theatre has gained an excellent reputation, particularly for its imaginative revival of modern classics.

Our Supporters The Oak Tree is funded by Arts Council England, Worchester City Council and Worchester County Council. Nevertheless, like many theatres the Oak Tree seeks to develop its relationship with the local business community and increase its income through sponsorship so as to improve its already high standards of presentation. We have previously developed successful partnerships with companies such as Marks & Spencer, Royal Worchester, AT&T, Clerical Medical and Stella Artois.

The Project The hit comedy, Head in the Clouds, will be the flagship of the Theatre’s autumn season. Staring Nelson Cochrane from Channel Four’s Westenders, it will be the first play of the season and will run from 22nd October to 29th November.

The Oak Tree Audience The theatre seats 830 and last year’s production of Cat on a Hot Tin Roof with Nelson Cochrane played to 92% capacity. The estimated audience for Head in the Clouds is 20,628 (27 performances at 764).

Publicity Head in the Clouds will be publicised as follows: 50,000 subscription leaflets A3, full colour 75,000 season brochures A4, full colour 15,000 flyers A5, two colour 600 posters 400 A3 and 200 DC, full colour Leaflets will be distributed via libraries, colleges, banks, shops and arts venues across the region. This will be supplemented by the extensive mailing list of Mercia Arts Marketing.

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Station hoardings and ‘drum’ sites are used for posters as well as arts venues and banks.

24 display adverts are taken out in the Worchester Citizen (circulation 180,000 - readership 62% ABC1C2) and two in the monthly Worchester Arts Magazine (circulation 70,000).

Sponsorship Benefits for Fothergill’s Fine Ales Ltd Fothergill’s Fine Ales’ name and logo will be prominently positioned on posters, subscription leaflets, season brochures, flyers and programme covers. The logo will also be included on our press advertisements for the show (All print work to be agreed with the sponsor in advance).

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Prominent acknowledgement will also be made in our extensive mailings to subscribers and Corporate Friends.

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One page of free advertising in the programme.

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Credit on our website and link through to your own website.

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Opportunity to run a joint promotion with the theatre to encourage crossover between theatre customers and Fothergill’s Fine Ales’ customers.

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The opportunity to run Fothergill's Fine Ale promotions and sampling in the theatre bar, with the possibility of negotiating an exclusivity agreement for the length of the run.

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Acknowledgement on the ‘sponsors’ board’ inside the theatre for the duration of Head in the Clouds and for a period of one year afterwards.

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All press releases concerning Head in the Clouds will carry a credit for Fothergill’s Fine Ales and we always work closely with our sponsors to help secure the press credits they deserve.

Hospitality •

The Oak Tree’s Subscriber’s Bar is a most attractive room in which to entertain guests. With space for 50 people, the Subscriber’s Bar will be available for the exclusive use of Fothergill’s Fine Ales on up to four occasions during the run. This includes the opening night and will be available before the play, during the interval and after the performance. Further use of this facility may be arranged by separate agreement.

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The Oak Tree’s award-winning catering department has an excellent reputation and would be delighted to provide food and drink as requested. Please note that the theatre normally charges for food and drink separately from any sponsorship agreement.

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20 complimentary best stalls seats for the opening night and priority booking for a further 80 seats at a 20% discount on any night of the run of Head in the Clouds. Support and advice in targeting guests for best use of these complimentary tickets is available if required.

Price The price of this sponsorship is ÂŁ6,000 plus VAT The promotional opportunities in this proposal are neither comprehensive nor limiting. We are always pleased to negotiate further or make alternative arrangements.

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Appendix B

Sample covering letter This sample letter is meant to be a general guide. It is intended that readers will use their own creativity and particular circumstances to produce their own unique document.

Mr James Fothergill Marketing Director Fothergill’s Fine Ales City Walls Trading Estate Worchester WO3 1AC

Dear Mr Fothergill, Opportunity to sponsor a hit production at Worchester’s Oak Tree Theatre Following our brief telephone conversation this morning, I am writing with further details of a sponsorship opportunity, which could be of significant benefit to your business.

Fothergill’s Fine Ales has a strong presence in this area with a number of pubs situated in the city of Worchester, as well as several in surrounding villages. Sponsorship of our flagship autumn production of the hit comedy, Head in the Clouds, will associate you with a successful and popular show attracting a similar audience to your own (83% ABC1 and 60% under 45). Naturally, your brand will be prominently credited on all our high quality print and you will receive complimentary tickets and use of our hospitality suite to entertain key customers and staff.

Other benefits are detailed in the enclosed summary proposal and I have included an example of our print from a previous production (successfully sponsored by Stella Artois).

The Oak Tree Theatre has and national companies. results for Fothergill’s find out more about your we can play a part.

developed fruitful partnerships with many local I am confident that we can deliver similar Fine Ales and would be delighted to meet you to marketing objectives and discuss ways in which

I will contact your office in a few days time to ask your opinion of my proposal. I hope we shall have an opportunity to meet soon.

With my thanks and best wishes.

Yours sincerely,

Kathleen Brown Administrative Director

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Appendix C

Sample letter of agreement This sample letter is meant to give general guidance only. You are advised to seek professional advice.

James Fothergill Marketing Director Fothergill’s Fine Ales City Walls Trading Estate Worchester WO3 1AC Subject to Contract

Dear James, Fothergill’s Fine Ales’ sponsorship of “Head in the Clouds” I am delighted that you have decided to sponsor our new comedy production, “Head in the Clouds”, due to open at Worchester’s Oak Tree Theatre on Wednesday 22 October. The show will run until Saturday 29 November. As agreed, I will invoice you for the total sum of £6,000 plus VAT on 1st October.

I think it would be helpful to confirm the other points we discussed at yesterday’s meeting. Your sponsorship will be acknowledged in the following ways: (a) “This production is sponsored by Fothergill’s Fine Ales [LOGO]” (b) “This production is sponsored by Fothergill’s Fine Ales, a Brewing International company.”

We expect to credit Fothergill’s Fine Ales on our printed material as follows. In all these cases we will show your credit in the main colour of the individual piece of print.

1. Posters - We will print 400 A3 posters and 200 double crown posters in four-colour for this production. These will be distributed to libraries, shop windows, arts venues and civic notice boards about one month before the show opens. We are expecting to credit you as per (a) and will show you the design work as soon as it becomes available. I understand that your nine pubs in the area will also display posters.

2. Season Brochure respectively of relating to the Roman upper and

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and Subscription Leaflet - We print 75,000 and 50,000 these. On both we propose to credit you in the panel production of “Head in the Clouds” in 12pt Times lower case as per (a).

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3. Programmes - We print 3,000 two-colour A4 (folded to A5) programmes.

I suggest we use credit (a) for your front cover acknowledgement and (b) for the page set aside for your own message or advertisement. I would be most grateful to have your camera-ready artwork for this by 1st August. If you do decide to have a special wrap-around of the first-night’s programme, we agreed to charge you for this at cost.

4. Display Advertising - Our display advertisements in the Worchester Citizen, What’s Occurring and The Guardian will carry your acknowledgement as per (a). /continued

We agreed our Publicity Officer, Jean Dover, will co-ordinate the press launch and press release. We have set aside 5 September for this. Do send her your list of people you would like to receive the press release and / or receive an invitation to the launch party.

We agreed that you will have two top price tickets for each evening performance. However, should you wish to bring a group of customers and employees to a particular evening we can redistribute these as necessary. Alternatively, we agreed to offer you up to 50 extra tickets at a 20% discount.

Our Catering Manager, Arthur Crouton, will be delighted to accept six free barrels of Mr Fothergill’s Finest Bitter for sale in the theatre bar during the production. We are most grateful for this additional sponsorship in-kind and will ensure your beer mats and bar towels are used for the duration.

We agreed our next progress meeting will be at 2.00 pm on 22 July at the Theatre.

I hope I have accurately covered everything we talked about yesterday.

Do call if you think I have misunderstood anything (or if you have any more ideas you think we can build in!), otherwise I shall assume all this is acceptable to you.

Finally, can I say that we are delighted that Fothergill’s Fine Ales is sponsoring us and we shall be making every effort to ensure the partnership between us is a fruitful one.

With my best wishes, Yours sincerely,

Kathleen Brown Administrative Director

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Appendix D

Sample contract This sample contract is meant for general guidance only and should not be taken as legal advice.

Arts organisations entering into contracts are strongly advised to seek professional guidance, if necessary.

SPECIMEN DOCUMENT

Dated 6 March 2001

OAK TREE THEATRE (WORCHESTER) TRUST LIMITED and FOTHERGILL’S FINE ALES

A sponsorship agreement in respect of the Oak Tree Theatre’s production of “Head in the Clouds”

The Oak Tree Theatre (Worchester) Trust Limited High Street Worchester WO1 1AA

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AN AGREEMENT made on the 6th day of March, Two Thousand and X. BETWEEN Fothergill’s Fine Ales of City Walls Trading Estate, Worchester, WO3 1AC (hereinafter called “the Sponsor”) AND The Oak Tree Theatre (Worchester) Trust Limited, High Street, Worchester, WO1 1AA (hereinafter called “the Theatre”) WHEREBY IT IS AGREED 1. In consideration of the agreement by the Sponsor to pay to the Theatre the sum of £6,000 (six thousand pounds) to sponsor a production of “Head in the Clouds” the Theatre agrees to provide the credits and benefits set out in paragraph 2 below.

2. From 5th June 200X to 29th November 200X the Theatre agrees: (1) to credit the Sponsor by giving the Sponsor’s name and details of the value of the sponsorship in all Theatre press releases concerning the production of “Head in the Clouds”.

(2) to give the Sponsor prominent acknowledgement on the front cover and on the cast page of the programme relating to “Head in the Clouds”.

(3) to give the Sponsor a full page in the “Head in the Clouds” programme opposite the cast page. All copy and camera-ready artwork to be provided by the Sponsor by 1st August 200X (4) to give the Sponsor prominent acknowledgement on that part of the season leaflet and subscription leaflet relating to “Head in the Clouds”.

(5) to give the Sponsor prominent acknowledgement on the poster for “Head in the Clouds”.

(6) to give the Sponsor prominent acknowledgement in display advertising relating to “Head in the Clouds”.

(7) that the exact colour and style of the typeface for the credits to be given under clauses 2(1) to 2(6) above shall be determined by the Sponsor and the Publicity Officer of the Theatre and shall form a separate agreement. If no agreement is reached by a date being two months prior to the first night of the production, the Theatre’s views shall be considered binding.

(8) to offer to the Sponsor a maximum of twenty complimentary tickets for the first night of “Head in the Clouds”, the Sponsor to notify the Theatre of the number of tickets required not less than four days before the said first night. A maximum of four tickets will be made available to the Sponsor for each night of the run of the production at the standard discount of 20%, such tickets to be reserved by the Sponsor not later than 6.00pm the day previous to the performance required. All tickets not so reserved may be sold by the Theatre

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(9) to provide the Worchester Suite free of charge to the Sponsor between 5.00pm and 11.30pm on the first night of the production for the entertaining of clients and guests. All costs relating to entertainment to be borne by the Sponsor.

(10) to provide a space in the foyer 5 metres by 2 metres for an exhibition relating to the Sponsor’s products for the run of the production. The Theatre must be consulted as to the content and style of the exhibition.

(11) to co-ordinate a press launch announcing the sponsorship by the Sponsor at a time and place to be agreed by both parties. The cost of such a press launch to be borne by the Sponsor.

Payment 3. Payment of the said sum of £6,000 (six thousand pounds) shall be made in full not later than the 21st day of September 200X 4. The payment shall be subject to Value Added Tax at the then current rate which shall be payable on receipt of the Theatre’s invoice for the same.

Other Agreements 5. It is agreed that all matters relating to the content and administration of the production “Head in the Clouds” shall remain the exclusive responsibility of the Theatre.

6. It is agreed that in the event of the production being exploited in any other theatre or through another medium such as radio or television, the Theatre’s best endeavours will be directed towards ensuring that the Sponsor is credited as the sponsor of the production. However, it is accepted by the Sponsor that a separate agreement may have to be negotiated with all parties concerned.

7. It is agreed that in the event of the production being revived by the Theatre the Sponsor will be granted first option to renew sponsorship of the production at a cost to be agreed. The Sponsor will give its decision on such renewal not less than six months before the start of the revival.

8. In the event of the cancellation of the production for whatever reason, this agreement shall be null and void. The Theatre shall forthwith return to the Sponsor the balance of the sum referred to in clause 3 and paid to the Theatre together with full accounting for the monies expended from the said sum. Thereafter the Sponsor may at its election sponsor any one event or production at the Theatre within the next eight months following the cancellation of the balance referred to hereunder.

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9. In consideration of the Sponsor providing the Theatre bar with six free barrels of “Mr Fothergill’s Finest Bitter”, the Theatre agrees to display the Sponsor’s beer mats and bar towels in the Theatre bar for the duration of the production “Head in the Clouds”.

10. This agreement is made solely with Fothergill’s Fine Ales and except with the written permission of the Theatre shall not be assignable.

IN WITNESS WHEREOF the parties have hereunto signed the day and year above written duly authorised for and behalf of FOTHERGILL’S FINE ALES: witnessed: duly authorised for and behalf of OAK TREE THEATRE (WORCHESTER) TRUST LIMITED: witnessed:

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Appendix E Further reading Did it work for you?

Evaluating business sponsorship of the arts Arts & Business / BDS Sponsorship Ltd, 2001 Did it make a difference?

Evaluating community-based arts and business partnerships Arts & Business / Comedia, 2001 Did it deliver?

Evaluating arts-based training inside business Arts & Business / Bridgebuilders, 2001 Private Investment in the Arts Annual Survey Arts & Business Complete Fundraising Handbook Nina Botting, Michael Norton Directory of Social Change, 2001 (4th Ed) Making giving go further: a fundraiser’s guide to tax-effective giving Brenda Campbell Giving Campaign, 2003 The Guide to UK Company Giving John Smyth Directory of Social Change, 2002 (4th Ed) Fundraising Strategy Redmond Mullin Directory of Social Change, 2002 Fundraising from Companies Jill Ritchie Wiremill Publishing Ltd, 2004

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Appendix F Arts & Business contact addresses Arts & Business London & Head Office Nutmeg House 60 Gainsford Street London SE1 2NY Telephone: 020 7378 8143 Fax: 020 7407 7527 www.AandB.org.uk Email info@AandB.org.uk

Arts & Business Northern Ireland 53 Malone Road Belfast Co. Antrim Northern Ireland BT9 6RY Telephone: 028 9066 4736 Fax: 028 9066 4500

Arts & Business Cymru 16 Museum Place Cardiff CF10 3BH Telephone: 029 2030 3023 Fax: 029 2030 3024

Arts & Business Scotland 6 Randolph Crescent Edinburgh EH3 7TH Telephone: 0131 220 2499 Fax: 0131 220 2296

Arts & Business East 67 Regent Street Cambridge CB2 1AB Telephone: 01223 321421 Fax: 01223 365536

Arts & Business South East 4 Frederick Terrace Frederick Place Brighton East Sussex BN1 1AX Telephone: 01273 738 333 Fax: 01273 738 666

Arts & Business East Midlands Martindale House The Green Ruddington Nottingham NG11 6HH Telephone: 0115 921 6950 Fax: 0115 921 6903

Arts & Business South West 61 Park Street Bristol BS1 5NU Telephone: 0117 929 0522 Fax: 0117 929 1756

Arts & Business North West Portland Buildings 127-129 Portland Street Manchester M1 4PZ Telephone: 0161 236 2058 Fax: 0161 236 2068

Arts & Business West Midlands Suite 16-18 21 Bennetts Hill Birmingham B2 5QP Telephone: 0121 248 1200 Fax: 0121 248 1202

The Sponsors Club for Arts & Business 9th Floor Cale Cross 156 Pilgrim Street Newcastle upon Tyne NE1 6SU Telephone: 0191 222 0945 Fax: 0191 230 0689

Arts & Business Yorkshire Dean Clough Halifax West Yorkshire HX3 5AX Telephone: 01422 367 860 Fax: 01422 363 254

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Glossary Arts-based training

Fundraising

The provision of management training or staff development work for a business using arts skills and techniques. For example, using theatre skills for management development workshops on effective communication and body language.

A generic term for raising money from business, individuals, public sector organisations, trusts and foundations. See also Development.

Sponsorship

Payment of an annual subscription by a business which entitles it to a set of standard benefits, such as a number of complimentary tickets, the use of hospitality facilities and discount on programme advertising.

Payment to an arts organisation by a business for the purpose of promoting the business name, its products or services. Sponsorship is part of a business’s general promotional expenditure.

It can encompass a sense of corporate or social responsibility, but should not be confused with charitable donations or other business support.

Development

Sponsorship in-kind

This is generally a euphemism for fundraising.

Many larger arts organisations employ Development Managers to raise money from various sources, including sponsorship.

Instead of writing a cheque, sponsorship in-kind is the provision of products, services or advice in lieu of payment for sponsorship benefits. If the business does not expect benefits then it is a donation in-kind.

Designer sponsorship

Subsidy

A business, or its PR company, devises a bespoke sponsorship and seeks an appropriate and willing arts organisation to deliver it for them in return for a fee.

Money from bodies with a duty to support the arts financially. For example, the Arts Councils, the Regional Arts Boards, the Museums & Galleries Commission, the British Film Institute, Scottish Film Council and the Crafts Council all have a duty to fund the arts.

Corporate membership

Donation A gift from a business to an arts organisation, which is made with no expectation of any return, commercial or otherwise. Donations include support from company trusts and foundations.

Employee volunteering A business makes its employees available to work with an arts organisation free of charge. The employee passes on his or her specialist knowledge while the process acts as excellent management development opportunity for him/her.

Support This is a generic term to cover any positive relationship between a business and an arts organisation.

Trusts and foundations A grant making body established by an organisation, or an individual, to fulfil specific charitable objectives.

Friends’ schemes

Validation

Payment of an annual subscription by an individual, often entitling that individual to certain benefits such as priority booking, advance information, newsletters, etc.

Validation is a snapshot of the immediate response of the participants to an event or a programme (compare with Evaluation). Evaluation is the process of determining whether the overall benefits derived from the event or the programme matched the overall investment and the learning and improvement systems that this involves.

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Published by Arts & Business Nutmeg House, 60 Gainsford Street, Butler’s Wharf, London, SE1 2NY T: 020 7378 8143 F: 020 7407 7527 E: head.office@AandB.org.uk W: www.AandB.org.uk President: HRH The Prince of Wales Chair: Baroness Helena Kennedy QC Chief Executive: Colin Tweedy Company Registered in England No. 1317772 Charity No. 274040 Price £15.00 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the copyright holder. © Arts & Business 2005 ISBN 0-9544 685-3-8

Sponsorship Manual Fifth edition