How to fix the funding issue

Whether museums or galleries sink or swim will be down to how effectively they market themselves.

Kiss goodbye to culture and tread carefully through the rubble of Britain's great art institutions. According to Nicholas Serota, writing in yesterday's Guardian, this country is about to experience the greatest crisis in arts and heritage since 1940.

While stakeholders from across the cultural sector were busy painting the bleak landscape that a potential 30 per cent cut to the culture budget will create, others spent the day discussing dynamic ways out of the funding black hole.

At a closed seminar day held at London's Institute for Contemporary Arts (ICA), the digital marketing strategists Blue State Digital and Cogapp gathered marketing heads of many of the UK's leading museums and galleries to discuss the potential of raising money through online marketing campaigns.

Rich Mintz, vice-president of strategy at Blue State, designed the online framework for Barack Obama's presidential campaign, and is the latest consultant to offer UK organisations US-style advice.

He believes that arts organisations and political parties can apply similar fundraising tactics thanks to the emotional hold they have over their supporters.

"People are drawn to an arts organisation because they're emotionally fired up by them, just like the cause of a political party. The success of online fundraising is based on locating these emotional ties that are at the heart of the institution's interaction with the public.

"These institutions know there's an untapped group of people who they can engage with online. This is about reaching out to supporters who they're not in touch with. The organisation's job is to appear humanised so people will find it easy to hand over their email address and take the first step."

Philanthropy

But when this reporter bumped into jolly marketing men from the Tate and the British Museum as they left the conference, neither organisation would divulge whether it is going to employ such mechanisms.

Soon, however, there might not be a choice. The Culture Secretary, Jeremy Hunt, told the New Statesman: "Arts organisations will have to become independent entrepreneurial fundraising bodies. They must have both the ability and responsibility to raise money for capital projects and also for endowments to give them funding security over the long term."

As it stands, UK arts organisations aren't reliant on one source of funding. Alan Davey, chief executive of Arts Council England, told the New Statesman, "In factm for every £1 of public money invested, a further £2 is leveraged in from elsewhere, from box office, private income, philanthropy and endowments. Public money, distributed via an arm's-length organisation, mixes with money from other sources to allow artists free expression and to create great art."

But, as the Conservative Party paves the way for a US-style financial regime -- in which the Tate and the British Museum will have to secure money from wealthy philanthropists -- Davey warns, "It is essential that philanthropy is not a substitute for public funding. Public investment creates confidence in other funders and allows arts organisations to continue making the inspiring, exciting art that they're great at.

"When private money is hard to get, as it is now, providing that public investment stays strong, the art can continue."

With this in mind, it's no wonder Serota worries that cuts announced on 20 October "will threaten the whole ecosystem" of culture in Britain.

Survival of the marketing fittest

It's hard to ignore Blue State's success during the Obama campaign -- mobilising three million individual donors to make a total of 6.5 million donations online, adding up to over $500m in online donations.

But, as UK arts institutions fight for private funding and individual contributions, their ability to stay afloat might come to depend on the effectiveness of their own marketing campaigns.

And if they experience any of Blue State's previous success, money won't be the worry. What is at stake here is the quality of the institutions that seek survival in the first place.

If a donor's allegiance was once based on the calibre of a gallery's curators, his support might now be dictated by the strength of that gallery's marketing managers.

Warning: don't be alarmed to find Barbara Hepworth sculptures atop the latest media platform instead of their usual pedestals next time you're at the Tate.

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Calum Kerr on Governing the Digital Economy

With the publication of the UK Digital Strategy we’ve seen another instalment in the UK Government’s ongoing effort to emphasise its digital credentials.

As the SNP’s Digital Spokesperson, there are moves here that are clearly welcome, especially in the area of skills and a recognition of the need for large scale investment in fibre infrastructure.

But for a government that wants Britain to become the “leading country for people to use digital” it should be doing far more to lead on the field that underpins so much of a prosperous digital economy: personal data.

If you want a picture of how government should not approach personal data, just look at the Concentrix scandal.

Last year my constituency office, like countless others across the country, was inundated by cases from distressed Tax Credit claimants, who found their payments had been stopped for spurious reasons.

This scandal had its roots in the UK’s current patchwork approach to personal data. As a private contractor, Concentrix had bought data on a commercial basis and then used it to try and find undeclared partners living with claimants.

In one particularly absurd case, a woman who lived in housing provided by the Joseph Rowntree Foundation had to resort to using a foodbank during the appeals process in order to prove that she did not live with Joseph Rowntree: the Quaker philanthropist who died in 1925.

In total some 45,000 claimants were affected and 86 per cent of the resulting appeals saw the initial decision overturned.

This shows just how badly things can go wrong if the right regulatory regimes are not in place.

In part this problem is a structural one. Just as the corporate world has elevated IT to board level and is beginning to re-configure the interface between digital skills and the wider workforce, government needs to emulate practices that put technology and innovation right at the heart of the operation.

To fully leverage the benefits of tech in government and to get a world-class data regime in place, we need to establish a set of foundational values about data rights and citizenship.

Sitting on the committee of the Digital Economy Bill, I couldn’t help but notice how the elements relating to data sharing, including with private companies, were rushed through.

The lack of informed consent within the Bill will almost certainly have to be looked at again as the Government moves towards implementing the EU’s General Data Protection Regulation.

This is an example of why we need democratic oversight and an open conversation, starting from first principles, about how a citizen’s data can be accessed.

Personally, I’d like Scotland and the UK to follow the example of the Republic of Estonia, by placing transparency and the rights of the citizen at the heart of the matter, so that anyone can access the data the government holds on them with ease.

This contrasts with the mentality exposed by the Concentrix scandal: all too often people who come into contact with the state are treated as service users or customers, rather than as citizens.

This paternalistic approach needs to change.  As we begin to move towards the transformative implementation of the internet of things and 5G, trust will be paramount.

Once we have that foundation, we can start to grapple with some of the most pressing and fascinating questions that the information age presents.

We’ll need that trust if we want smart cities that make urban living sustainable using big data, if the potential of AI is to be truly tapped into and if the benefits of digital healthcare are really going to be maximised.

Clearly getting accepted ethical codes of practice in place is of immense significance, but there’s a whole lot more that government could be doing to be proactive in this space.

Last month Denmark appointed the world’s first Digital Ambassador and I think there is a compelling case for an independent Department of Technology working across all government departments.

This kind of levelling-up really needs to be seen as a necessity, because one thing that we can all agree on is that that we’ve only just scratched the surface when it comes to developing the link between government and the data driven digital economy. 

In January, Hewlett Packard Enterprise and the New Statesman convened a discussion on this topic with parliamentarians from each of the three main political parties and other experts.  This article is one of a series from three of the MPs who took part, with an  introduction from James Johns of HPE, Labour MP, Angela Eagle’s view and Conservative MP, Matt Warman’s view

Calum Kerr is SNP Westminster Spokesperson for Digital