Culture Radar Funding Creativity An Internal Research and Discussion Paper to Inform Creative Scotland’s Funding Review Options Appraisal (Abbreviated) March 2019 1 Funding Creativity: An Internal Research and Discussion Paper to Inform Creative Scotland’s Funding Review Options Appraisal (Abbreviated) Prepared for Creative Scotland by Jeanie Scott, Culture Radar, March 2019 2 Contents Introduction & Background ....................................................................................................... 4 How to read this report ............................................................................................................. 6 Executive Summary .................................................................................................................... 7 Methodology ............................................................................................................................ 11 Section 1: Context for the Funding Review ............................................................................. 14 Section 1 Summary .............................................................................................................. 21 Section 2: Grant funding .......................................................................................................... 23 1. Arts council and creative agency funding ..................................................................... 25 2. Lottery grant funding .................................................................................................... 37 Section 2 Summary .............................................................................................................. 46 Section 3: Finance and investment .......................................................................................... 49 1. Enterprise approaches .................................................................................................. 56 2. Innovation ..................................................................................................................... 63 3. Social and community investment ............................................................................... 69 4. Place-based investments and initiatives....................................................................... 80 Section 3 Summary .............................................................................................................. 94 Section 4: Appendices .............................................................................................................. 97 Appendix 1: Open Project and Strategic Funding ................................................................ 97 Appendix 2: References ..................................................................................................... 106 Appendix 3: Summary of Funding Programmes Referenced ............................................ 109 3 Introduction & Background This research study was undertaken to inform Organisational Development work being carried out by Creative Scotland in 2018-19. The Organisational Development work comprises: • Review of Creative Scotland Culture, Values, Structure and Operations • Strategic Review • Funding Review Key drivers for the timing of these reviews include the 2018 evaluation of Creative Scotland’s Regular Funding Process conducted independently by Wave Hill, the imminent publication of the Scottish Government’s Culture Strategy and the ongoing decline in public and private funding for culture. The Funding Review is considered within the context of Creative Scotland’s full remit (art, screen and creative industries) and the wider legislative and regulatory environment in which Creative Scotland works. The Funding Review being carried out by Creative Scotland will comprise a five-stage process: 1. Research 2. Consultation 3. Design 4. Testing 5. Implementation This paper forms one part of the Research phase, alongside a review of recent Creative Scotland, Scottish Government and other open consultations, and analysis of current and historic funding patterns. The purpose of this paper is to refresh knowledge and understanding of the funding landscape for culture and creative industries in the UK and internationally and present a summary of funding models and approaches to inform an options appraisal to be undertaken by Creative Scotland. The Research focus is broad to encourage new learning from sectors outside culture and new approaches to investment, including: • Models currently operated by Creative Scotland • Arts council and agency funding models • Enterprise support • Social investment models • Creative industries approaches • Devolved funding models • Co-funding models with other organisations (e.g. local authorities) The focus of the study is UK and international - including relevant literature from across the UK and elsewhere in the world where lessons can be learned (in particular Australia, Canada and Northern Europe), and learning from other arts and creative agencies which enabled comparisons of best practice and benchmarking for Creative Scotland. 4 This study presents findings taken from published literature and data including sector reports and survey findings from policy makers, funders and sector bodies; academic literature; books; journal articles; and trade press. It also refers to learning from internal reports kindly supplied by other funders and agencies, and one-to-one interviews conducted with Creative Scotland staff and representatives of other agencies, including: Arts Council England, Arts Council Norway, Arts Council of Wales, Australia Council for the Arts, Canada Council for the Arts, Highlands and Islands Enterprise, Mayor of London’s Culture Strategy Team (Greater London Authority), National Lottery Community Fund, Power to Change and Sunderland Culture. Material for review was prioritised by relevance to the scope of the funding review, and the most recent evaluation of models (i.e. within the last five years). For newer finance and investment models, where it has not been possible to gather hard impact evidence, interviews and case studies are used to illustrate approaches. What the report does not cover Due to the timeframe and resource available, and the already broad scope of the brief, a number of assumptions are made, namely: • This is not a review of Creative Scotland resources or processes – that has been undertaken to some depth by independent consultants Wave Hill1 in 2018. This report has drawn on their key findings and recommendations only. • The research does not review any funding or income generating mechanisms that, while they may impact on funds available to culture, are not within the control of arts councils and agencies (e.g. tax incentives, tax raising schemes). • Due to the scale, complexity and diversity of approach of local authority spending on culture across the UK it is beyond the scope of this study to review or compare approaches in detail, although broad trends have been noted. • It was not possible to look in detail at all sources of funding available to individuals working in the cultural sector due to the scale of freelance and sole traders employed in the sector and contributing to its success. In the last two years in depth studies into artists livelihoods have been conducted by the Scottish Contemporary Art Network2 and TBR3 which could usefully inform further research. • Similarly, the issues of accessibility to funding in relation to equalities and diversity could not be covered in this report but will require consideration, and would benefit from expert input, when it comes to designing a funding strategy. • And lastly, this is not a review of the value of investing in culture and creative activity through the public sector - this report is prepared on the basis that strong public support for culture will continue. 1 Evaluation of Creative Scotland 2018-2021 Regular Funding Process, (Wave Hill, Oct 2018) 2 Mapping the Visual Arts in Scotland (SCAN, 2015) 3 Livelihoods of Visual Artists: 2016 Data Report (TBR, December 2018) 5 How to read this report Quick overview Suggested route to understanding the content of this report quickly is to read: 1. Executive Summary 2. Section Summaries 3. To delve deeper into each section read the coloured information boxes: Examples drawn from desk research to illustrate a policy or funding model approach relevant to the section. Case Studies were drawn from conversations and internal documents supplied by participating funders and organisations to augment learning around issues raised in the 2018 evaluations of Creative Scotland’s regular funding process. This information was obtained for internal use by Creative Scotland. To maintain participant confidentiality, these case studies are not included in the abbreviated public version of this report. Practical Learning and Best Practice drawn from the experience of other funders and agencies as recorded through Case Studies (above) for Creative Scotland’s use, but anonymised and summarised here. SWOTs drawing together salient points to inform Creative Scotland’s Options Appraisal process. Full report To read the report in full, read the Executive Summary and each section in order. The report is split into three main parts providing: • Section 1 context for the funding research • Section 2 a summary of grant funding models • Section 3 a summary of finance and investment approaches to funding culture and creative activity As indicated above, Parts 2 and 3 are augmented with highlighted