There is currently discussion about the introduction of new tax incentives
for corporate and private giving to the arts in the UK.

Unlike say the USA, the larger part of non-earned income for national,
regional and local art museums and for "independent" non-commercial art
galleries is from National or local government or the National Arts
Councils (of England Scotland, Wales, Northern Ireland) .

In general this covers or significantly contributes towards the basic staff
and running costs but, increasingly the money is insufficient to provide
realistic purchase grants or exhibition budgets.

It has been suggested that if the Treasury were to seriously consider new
tax concessions for corporate and private giving, this would only be agreed
if it went with a cut back or elimination of part of the direct National
government funding and the government funding to the Arts Councils.

The situation on the UK is further complicated by the subject of The
Lottery.  Significant capital projects are now planned and Lottery funding
for some have already been agreed, giving rise to the largest national
capital input to the arts that any of us have experienced. But under the
present rules, Lottery Funding cannot be used for the creation of endowment
funds or direct running costs.

One of the conditions of Lottery funding of capital projects is that a
(variable) percentage of the costs have to be met from other sources.  This
has already led to the situation that the non-lottery contributions for
projects already agreed, exceeds the annual total of current business
sponsorship funding for the arts in Britain, which mostly goes towards
revenue costs (including new productions, exhibitions etc)

At a time when, despite government promises that Lottery Funding would be
ADDITIONAL to the current level of direct Government funding to the arts
and government grants to the National Arts Councils, we are seeing a cash
cutback in annual Government funding to the arts which amounts to a
significant cut (=A310 million) in real terms - at a time when many arts
organisations are trying to deal with the problems of accumulating annual
deficits.  The National Museums and Galleries have lost =A319 million in rea=
l
terms in one year.  The Government plans to cut a further =A33.2 million in
the following financial year.

The Government will have reduced the value of the arts grant (all art
forms) in England by =A327 million by the end of its term in office - despit=
e
its manifesto pledge to "maintain support for the arts". (figures from the
National campaign for the Arts)

On this basis we will soon have some splendid new arts buildings with
nothing going on inside them !

It has been suggested by some politicians that the Lottery money should
replace capital AND revenue grants from central government to the arts, a
move which is vigorously opposed by those working in the arts.
Are we to see the arts in Britain *run as a Lottery *?

We are interested in having the views and experience of art museums and
galleries in other countries on the subject of the balance of funding
sources and the problems they are currently facing.

It would be very much appreciated if you could e-mail us summary
information about your last year actual financial results and your budget
for the current year, in the following format:

YOUR LAST YEAR ACTUAL RESULTS and CURRENT YEAR BUDGET
outgoings (please state currency) :

Premises and general running costs
Staff costs
Collection management costs
Exhibitions costs
Education costs
other costs
TOTAL EXPENDITURE

income (please state currency) :

Central Government / Federal
Local and Regional government
=46oundations
Business sponsorship (does this have tax incentives for the sponsor ?)
Individual giving  (does this have tax for the donors ?)
Admissions income
Income from touring your exhibitions
income fromsupply copyright images, gallery publications etc
net income from trading (bookshop, restaurant etc )
TOTAL INCOME

Donations of works of art to permanent collection:
value last year : private donors  (did this have tax benefits for the donors=
 ?)


AND could you let us have your views on the advantages and problems of the
present balance you have between state, regional or local funding, business
sponsorship, foundation and individual giving - together with your views on
the balance that you would ideally like to see between the various funding
sources.  Finally could you identify problems that you see with funding
sources in the near future.

This information (please state if you wish it to be unatributed) will be
used in additional written evidence to the National Heritage Committee of
the House of Commons, London which is currently enquiring into the Funding
of the Performing and Visual Arts  - to which VAGA has already given
written and oral evidence.

Thank you very much for your help it is in a good cause !


Jeremy Rees
Chairman, VAGA (Visual Arts and Galleries Association).


Jeremy Rees
Director, IVAIN
[International Visual Arts Information Network]
24 Lots Road, London SW10 0QF
e-mail  [log in to unmask]
voice  44 171 376 8759
fax  44 171 352 7055