15/05/12: Innovative scheme to incentivise philanthropic support for arts unveiled – Deenihan

• Funding of €230,000 set aside for arts organisations that raise money from private funds
• Scheme aims to promote support for the arts from private sources and to unlock 2.5 times the funding put up by the taxpayer

Tuesday, May 15th: Jimmy Deenihan TD, Minister for Arts, Heritage and the Gaeltacht, has today announced the introduction of a new philanthropic initiative – on a pilot basis – for arts and culture organisations.

The initiative – the Philanthropy Leverage Initiative – is designed to encourage philanthropic sponsorship and endowment funding of the arts from private sources. The initiative, established with funding of €230,000 for 2012, will be managed by the Department of Arts, Heritage and the Gaeltacht.

The Philanthropy Leverage Initiative will provide an incentive to arts organisations to proactively seek new and multi-annual relationships with sponsors which deliver private sector financial support, thereby increasing overall funding available to the arts.  It will be available across projects of varying scale, geography and art forms.

It is envisaged that this funding will unlock new private sector funding of 2.5 times the State allocation of €230,000 generating total additional funding of €805,000 to the arts in 2012. The pilot initiative will be reviewed at the end of 2012.

Minister for Arts, Heritage and the Gaeltacht – Jimmy Deenihan TD – commented:

“While philanthropy in general is reasonably well developed in Ireland, this is not the case in the arts and culture sector.  Philanthropy for arts and culture is underdeveloped in Ireland compared to other sectors and compared to other countries, particularly the United States.

“Today’s obvious constraints on the taxpayer mean that we have to look for innovative ways to address funding issues. The philanthropy scheme announced today aims to incentivise private fundraising and offers more taxpayer funding to those organisations that can raise the most support from other sources. I hope that these initiatives will help to develop philanthropic giving to the arts in Ireland.”

Applicants for funding will be able to apply to the Philanthropy Leverage Initiative for support in one of four categories, with each category targeting a different multiple of matching funding. An organisation can seek State funding of €5,000 if it can raise €10,000 from new philanthropy, sponsorship or endowment funding, a 2:1 ratio of private to taxpayer funding.


However, an organisation can apply for more funding taxpayer funding – up to €20,000 – if it can raise €100,000 from new philanthropy. More funds are, therefore, available to organisations that can match taxpayer funding with a higher multiple of private support. There will be a bias towards to applicants that can provide a higher multiple of private support for their project.

Funding under this initiative will be available to not-for-profit organisations for arts programming projects.  Organisations will have to procure matching funds and complete their drawdown in 2012.  Matched funding cannot come from public funds or from any public sector organisation.  Funding will be allocated on a first-come-first-served basis until the overall ceiling of €230,000 has been reached.

The Leverage Initiative will run in parallel with a second initiative – the Philanthropy Capacity Building Initiative – which is operated by the Arts Council.  Under this initiative the Arts Council will provide one-to-one professional advice and direct funding support to a number of selected organisations to help them build and resource their capacity to attract philanthropic giving.  This initiative will be delivered over two years and will be conditional on performance.

In developing this complimentary programme, the Arts Council has identified that it is vital for organisations to develop, agree and implement an effective fundraising strategy, and to properly resource that fundraising function.  This is vital if organisations are to be supported by the State in diversifying their funding base.

Please click here for Application Form.

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Note to Editors:

The Programme for Government 2011 includes a commitment to “work with stakeholders in the Arts community to develop new proposals aimed at building private support of the Arts in Ireland exploring philanthropic, sponsorship or endowment fund opportunities.”

Today’s announcement builds on this programme commitment and also reflects the Report of the Working Group on Arts Funding which reported last September.  The broad thrust of this Report was the need to have a two-pronged approach to the development of philanthropy through leverage funding and capacity building.
The level of funding available will increase in direct proportion to the level of private funding achieved by the applicant, according to four categories as set out below:

Category Grant available Funding ratio Description
I Up to €5,000  2:1 Grantee raises €2 for each €1 of State funds so grant of up to €5,000 would be paid if €10,000 were raised
II Up to €10,000  3:1 Grantee raises €3 for each €1 of State funds so grant of up to €10,000 would be paid if €30,000 were raised
III Up to €15,000  4:1 Grantee raises €4 for each €1 of State funds so grant of up to €15,000 would be paid if €60,000 were raised
IV Up to €20,000  5:1 Grantee raises €5 for each €1 of State funds so grant of up to €20,000 would be paid if €100,000 were raised



Department of Culture, Heritage and the Gaeltacht, 23 Kildare Street, Dublin , D02 TD30. Tel: 01 631 3800 / LoCall: 1890 383 000

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