The Income Analysis provides a detailed revenue breakdown to demonstrate the role of private sector support, including revenue sources, fundraising expenditure and predictions on future revenue mix.
The total value of industry turnover in the arts and cultural sector was estimated to be $1.9 billion in the 2020 calendar year and 2020/21 financial year, with private sector support continuing to account for 21% of all turnover in the sector.
Most income was earned through government grants (48% of revenue), although organisations reported that box office and sales (25% of revenue) and private sector support (21% of revenue) played an equally important role in the funding mix.
The largest share of private sector support remains among New South Wales organisations, who accounted for 36% of all private sector support raised by arts and cultural organisations.
Arts and cultural organisations are spending more to raise funds with the Return on Investment (ROI) for every $1 spent, $2.97 was raised, representing a 9% increase from Giving Attitude 2 when the ROI for the industry was $2.72.
total value of industry turnover in the arts and cultural sector
total value of private sector support for the arts and cultural sector (26% decline from Giving Attitude 2)
in cash contributions from donations and sponsorships
48% of the overall turnover reported in the survey was through government sources, a 5% increase from Giving Attitude 2. Earned income accounted for 25% of overall turnover, while private sector support accounted for 21%.
Giving Attitude 2.5 found that most of the estimated $398.4 million in private sector support was received in New South Wales ($142.3 million). While New South Wales received the highest amount of private sector support compared to other Australian states, this was still a decline of 19% from Giving Attitude 2 ($185.2 million).
of income earned through government grants
of income earned through box office and sales
of income earned through private sector support
of income earned through other sources
The overall decline in private sector support for Giving Attitude 2.5 is attributed to a significant decline of cash support ($378m to $287m) and volunteer and pro bono support ($124m to $65m). Volunteer and pro bono support accounted for 16% of private sector support (compared to 23% GIving Attitude 2).
There was a rise in in-kind contributions in Giving Attitude 2.5 ($38.4m from $46.1m) which resulted in a significantly higher (12%) share of overall private sector support. This rise in in-kind support bolstered organisations as a more substantial decline in other types of private sector support occurred.
Further analysis of the types of investment show cash donations were a key reason for the rise in cash contributions overall, with a 3% increase to 65% of all cash support recorded.
The decline of in-kind contributions is attributed to a significant reduction in in-kind donations. In the previous reporting period, in-kind donations accounted for an 33% share of total in-kind support, which dropped significantly to 15% in Giving Attitude 2.5.
Approximately half of support hours reported in Giving Attitude 2.5 were either volunteer hours or pro bono hours. This was a significant change from Giving Attitude 2, when only 22% of support hours were pro bono.
This remained relatively constant with the previous reporting period. In this new reporting period, business sponsors dropped from a previous share of 5%, to a current share of 3%.
38% of business sponsors were with the organisation they supported for more than five years. 30% of individuals or trusts and foundations have been donating to an organisation for more than five years.
35% of business sponsors were with the organisation they supported for less than five years. 34% of individuals or trusts and foundations have been donating to an organisation for more than five years.
There is an expectation that the industry will rely more on private sector support in future, with predictions that it will comprise a higher share of overall funding (+3%) in five years’ time, growing it from 23% to 26%.
Giving Attitude 2.5 revealed that arts and cultural organisations are achieving a higher return on investment, with the Return on Investment (ROI) for every $1 spent on fundraising at $2.97 raised. This is an increase compared to Giving Attitude 2, with an ROI was $2.72 for each dollar spent. However, this remains far below the benchmark measure for fundraising in Australia across all charitable cause areas of approximately $5 raised for every $1 spent.
Larger-sized organisations continue to have a greater likelihood of a higher ROI. Extra-large organisations had the highest ROI at $6.80 for every $1 spent.
Aside from salaries, which account for the majority of expenses at 60%, event expenses are the second highest contributing expense at $14.4 million in total.
Overall expenses declined in Giving Attitude 2.5 compared to previous surveys. This includes marketing expenses, which have dropped 3% since Giving Attitude 2 to 7% of total fundraising costs.
Explore the data from Giving Attitude 2.5 to compare across surveys, analyse trends, and share your insights using our interactive Giving Attitude dashboard.Explore data
Read a detailed presentation and analysis of the survey results by downloading the Giving Attitude 2.5 PDF Report.Download PDF Report