CC(3) VS8

CC(3) 05-07(p2): 7^th November 2007

Communities and Cultures Committee - Inquiry into the Funding of Voluntary Sector Organisations in Wales: Evidence from the Arts Council of Wales

The Arts Council of Wales (ACW) works closely in partnership with the voluntary sector across Wales.  The voluntary sector in the arts has many different components.  There is the purely participative and entirely voluntary activity which includes local brass bands, choirs, eisteddfodau, drama societies, musical societies and local festivals.  There is also the grassroots activity of local organisations hosting performances through the Night Out scheme.  

On another level, there are many arts participation projects led by professional artists, including community arts activity.  These projects often work with our most deprived communities through organisations such as Valleys Kids, Tan Dance, Valley and Vale and Rubicon Dance, to name but a few.  This strand of activity also includes arts in health care, and arts in education.  Almost all of the theatre in education companies, who work across Wales, are voluntary organisations.

Finally, the majority of arts provision in Wales is provided by voluntary organisations, whether, this is performing arts, literature, visual arts or participatory arts.  Many of our major performing arts organisations are voluntary bodies, in that they are usually registered charities, have unpaid boards, and are non-profit making.

Without the voluntary sector, the arts in Wales would be a shadow of their current selves.

Funding for the voluntary sector

ACW funds the voluntary sector in four principal ways -

• Revenue funding
• Project Grants
• Capital funding
• Night Out

Revenue funding

104 bodies receive regular funding, of which 83 are voluntary bodies.  The following table shows the amount of funding allocated in this way and the proportion that goes to the voluntary sector.  

As can be seen, the voluntary sector receives almost 83% of all funding allocated in this way.  The funding is normally allocated through three-year revenue funding agreements.  Revenue funding is entirely drawn from Assembly Government funds.

Project Grants

Project grants are funded through the National Lottery.  There are essentially two strands, major awards with a normal ceiling of £30,000, and small grants up to £5,000.  These are subject to application.  The grants are open to individual artists, as well as to organisations.

The sums available for these grants have been declining sharply, and are set to fall further.  This is covered more fully in the final section of this report.

The following table shows the distribution of the grants.

As can be seen, voluntary sector organisations are the major beneficiaries, receiving a total of £3.72 million in the last financial year.

Capital Funding

ACW has run a capital programme funded by the Lottery since Lottery funding first became available.  The obvious manifestations are the major performing arts centres such as Galeri in Caernarfon or the Riverfront in Newport.  However, the programme has also funded very many smaller but equally important grants including instruments for brass bands and halls in which to rehearse, disabled access to existing facilities, key equipment including vans, sound, lighting, film projection and so on.  We have recently funded audio description and subtitling facilities in 10 venues across Wales to enable hearing and visually disabled people to access the movies.

The following table shows both the relative distribution of grants, but also the decline in available funding.

The Lottery capital programme is now essentially closed to new applications, as the currently committed projects will account for all of the reduced funding available.

Night Out

The Night Out scheme is a "Made in Wales” success story now copied across the UK.  It works in conjunction with local authorities across Wales to enable local community groups to put on professional performance in local non-traditional venues including schools and village halls.  It is designed to build capacity in local communities as well as provide a good night out!

In 2006-07 there were 638 shows, of which 179 took place in Communities First areas. To date in 2007-08, we have approved 401 performances with 105 of these, taking place in Communities First areas.

The scheme has benefited from an injection of funding from the Welsh Assembly Government in recent years, which has enabled it to substantially increase its activity in Communities First areas.  The scheme operates primarily as a guarantee against loss, so funding can often be recycled where the ticket income covers the cost of the performance, but to reflect the requirements of Communities First areas, not only is there more development work, but the sums available for each performance are higher.

Working with the Voluntary Sector

ACW recognises the importance of working in partnership with the voluntary sector in line with the best practice models promoted by the Welsh Assembly Government.  We have particular formal links with the voluntary participative arts sector, which represents the entirely voluntary arts organisations across Wales.

We agreed a revised Voluntary Sector Compact in 2003 which sets out the broad principles and shared values which inform the relationship between ACW and the voluntary cultural sector.  The Compact is overseen by the Compact Working Group, which includes 4 individuals nominated by Voluntary Arts Wales and 4 nominated by the Wales Association of Community Artists.

The content of the Compact sets the basis for ACW’s relationship with the voluntary sector in Wales. The examples of how this affects ACW on a day-to-day basis include:

• introducing three year funding agreements with our revenue clients
• ensuring participation remains central to all ACW policy delivery
• having open and fair assessment procedures within our grant schemes
• ensuring all ACW action plans reflect Voluntary Cultural Sector needs
• identifying, sharing and encouraging best practice across the sector
• introducing ways of working in partnership with the voluntary cultural sector in all relevant policy areas
• ensuring consultation arrangements that allow enough time for wider consultation with networks and service users
• ensuring feedback is given to people who have taken part in consultation
• identifying and targeting resources effectively
• encouraging people to take part in and promote participation in events, which stretch their imagination and talents.

The Compact Working Group has agreed that it is appropriate to review and renew the Compact in light of the changes which have taken place since it was first introduced, and have recently agreed the following position statement, which was formally approved by the Arts Council.

The Arts Council of Wales and the Voluntary Cultural Sector share the belief that people of all ages, abilities and cultures, wherever they live in Wales, have the right to define, create, and actively participate in the arts activities of their choice.

'Everyone has the right to freely participate in the cultural life of the community, to enjoy the arts’

Article 27 'Universal Declaration of Human Rights’  

Participation in the Arts is a primary mechanism for experiencing this cultural right and offers an inclusive and essentially different experience from the consumption of the culture produced by others.

The Arts Council of Wales and the Voluntary Cultural Sector believe that participation in the arts is an empowering creative process that engages, educates and promotes a healthy nation.   

The Arts Council of Wales and the Voluntary Cultural Sector recognise that, in partnership with others, they have a duty to broaden the public access and increase opportunities for practical participation in the arts throughout Wales and in so doing provide a pathway for enjoyment, personal development, well-being, community cohesion and the enrichment of local and national culture.

In addition to the work specifically on participation, ACW also meets regularly with the umbrella bodies representing the whole of the arts sector in Wales, and consults both collectively and individually on all major policy changes.

Outcomes

Some of the outcomes of the investment in the arts are set out below.  The figures specifically highlight participation, and volunteering.

Participation in the Arts

Source: Arts in Wales, Attendance, Participation and Attitudes. Report on Survey Findings, 2005, ACW

• One in five (20%) people in Wales participate in arts events at least once a year or more
• Visual arts and crafts has the highest level of participation with one in ten people taking part at least once a year or more, while a similar number (9%) take part in music activities
• Over half of those who participate in music (60%), visual arts and crafts (53%) and dance (51%) are doing so on a weekly basis.
• The majority of participants take part in events within their own neighbourhood or in the town or area they live.
• The main reason people take part in arts events is for pure enjoyment and pleasure with 74% of those taking part in events mentioning this. Around 1 in 5 (19%) said that learning new skills was a reason for taking part.

Annual Survey of Revenue Funded Organisations 2004-2005, ACW

• In 2004/05 just over 2,000 open access workshop/participatory projects were delivered by Revenue Funded Organisations offering over 31,000 workshop sessions.
• Just over 1,733,000 attendances were made to workshops or participatory activities organised by Revenue Funded Organisations during the year.
• Over 2,000 workshops/participatory projects were run by Revenue funded Organisations for children and young people in Wales which resulted in 32,300 sessions and nearly 759,500 attendances.

Volunteering in the Arts

Source: Arts in Wales, Attendance, Participation and Attitudes. Report on Survey Findings, 2005, ACW

• In total, a fifth of the population has been involved on a voluntary basis at some point in time, with around half of these doing so within the last year
• These volunteers are more likely to be women.

Annual Survey of Revenue Funded Organisations 2004-2005, ACW

• During 2004-05 there were 5,261 people employed within Revenue Funded Organisations and of these 1,933 were volunteers (which represents 37%)
• Of the 1,933 volunteers 321 were from specific groups including disabled people, people from ethnic minority backgrounds and welsh speakers.

Statements Taken From the Arts Work 2007:

• On average young people in Wales spend two hours a week participating in arts activities; and 'enjoyment' and 'learning new skills' were the main reasons given for taking part.

(Source: Participation in the Arts by Young People, ACW 2006)

• Splash Cymru is a project aimed at reducing crime rates by involving young people in activities during school breaks.  19 young people from Kenfig in Bridgend were given the opportunity to make their own film, including choosing the theme, the script, writing, acting and editing. The young people portrayed the effects on their community if their youth club were to close down from lack of funding. The film premiere at the club was a great chance for the young people to showcase their achievements. The project enabled participants to learn a range of new skills, increase confidence and work as part of a team.

"I thought it was fab!”

"Feedback shows that Splash Cymru made a real impact in the lives of the young people it engaged.”

(Source: KPC Youth, Bridgend, Splash Cymru 2006 Prevention Programme Support Team)

• Conwy and Denbighshire NHS Trust has two Artists in Residence.  They work with patients across the Trust in five community hospitals as well as the Acute District Hospital. Elderly patients at Ruthin and Denbighshire Community Hospitals took part in regular art sessions resulting in positive changes in mood, a sense of pride and achievement and a huge increase in confidence for the participants.

Staff observed:  "This chiefly elderly, formerly fragmented group - some  very isolated - is now a cohesive, communicative group of people who are gaining in confidence all the time.”

A patient said: "It’s brought out skills we didn’t know we had.”

(Source: Conwy and Denbighshire NHS Trust Arts Strategy)

Future Challenges

The most difficult challenges which face us relate to the reduction in Lottery income.  This has been a key source of funding for the voluntary cultural sector, as indeed for the voluntary sector more generally.  The reduction in income to date has already eaten into the resources available, and this is shown graphically in the chart below.

Around 450 Lottery tickets need to be sold in order for ACW to receive £1.  This compares with 7 tickets for the Big Lottery Fund; 30 for Arts Council England and 277 for the Scottish Arts Council.

ACW’s income from the Welsh Assembly Government has increased markedly in recent years, and we are very grateful for this important recognition of the role of the arts in contributing to so many areas of our life in Wales.  By contrast, the income from the National Lottery has shown a steady and marked decline.

• ACW’s Lottery income in 2008/09 will be less than it was seven years ago.
• The highest point in ACW’s Lottery funding was 1997/98 (£17.720m).
• 2006/07 was ACW’s lowest income recorded since the Lottery began (£10.791m).
• ACW’s Lottery funding will reduce by around £11.7m over the next four years: that equates to a loss of more than a year’s income.
• ACW’s predicted income at the end of the decade will be half that at the start of the decade, and it will be even worse when inflation is factored in.

The impacts

The reduction in ACW’s Lottery income will put the whole of the arts infrastructure in jeopardy, an infrastructure that has taken years to create and nurture through targeted investment of both Welsh Assembly Government and Lottery funds.

Many small voluntary organisations, and the community arts in particular, will be adversely affected.

The impact will be felt across ACW’s programmes including the small grants scheme (under £5k), project funding and capital.

ACW’s response

ACW is reducing its capital programme. Ten projects (amounting to £9.2m) have already had to be removed completely and the programme is now closed to new applications.

ACW is planning to "smooth” the fall in its project grant schemes over the next five years - there is likely to be a sharp fall in 2008/09 (£3.1m from £4.0 m in 07/08).

ACW is managing clients’ expectations by scaling down applications to around 50-75% of the previous year’s awards; reducing the maximum amount an organisation can normally apply for from £50k to £30k and reducing the maximum percentage of eligible costs from 90% to 75%.

ACW has restructured and reviewed internal processes to further streamline how it manages and administers Lottery grants, and has made substantial cost savings. Regrettably, this has included staff redundancies.

Conclusion

ACW has worked closely with the voluntary sector to produce a vibrant arts scene across Wales, which offers opportunities for all of the people of Wales to experience or participate in the arts.  The future of this success may be put in jeopardy by reductions in funding.

Arts Council of Wales
November 2007