Culture secretary announces matched funding scheme
December 2010
Cornerstone funding gathered momentum when culture secretary Jeremy Hunt announced an £80m investment
in a new series of ‘match fund’ schemes, to raise at least an equivalent amount from private donors for the culture sector.[1]
The cash follows hot on the heals of Sir Ronald Cohen’s remarks at last month’s Good Deals 2010 conference,
[2]who reminded delegates that this was something the Social Investment Taskforce had called for in its report delivered last April. Around £50m of it will come from Arts Council England and the Department for Culture Media and Sport (DCMS) will contribute a further £30m and the scheme is expected to kick off in April 2011.
Paul Myners, the peer who dealt with the banking crisis under Gordon Brown’s premiership did query whether this was, to a large extent, a rebranding of funds already provided to the sector in the £470m support announced in the Comprehensive Spending Review.
[3]
Speaking at the headquarters of JP Morgan, he emphasised the need for organisations to “develop more mixed funding models to help give them long-term financial stability and certainty. This stability will allow them to plan ahead with confidence, leading to a more vibrant and resilient cultural sector.”
Simon Weil of Bircham Dyson Bell who chairs the European Association for Philanthopy and Giving (EAPG)
[4] told
Caritas that this was an important move because traditionally, in the UK, donors have been reluctant to give to endowments because the want to see gifts have a direct impact on programme-related work. “A lot of donors do not really understand the dynamics of a service-providing charity – they need endowments to provide sustained financial stability to keep the work going.”
He went on to make the point that without clear tax incentives it would be unlikely that a significant increase giving would be unleashed. His remarks followed the recent non-committal response from Justine Greening, the economic secretary to The Treasury, to Peter Fanning’s letter of 13 October on the recommendations of the Gift Aid Forum.
[5] 
Author: Clarissa Dann
Clarissa Dann was the editor of Caritas as well as an HR and management online service,he People Bulletin until July 2011.
She is now the editor of the specialist trade finance magazine, Trade and Forfaiting Review which can be viewed at www.tfreview.com but does write on charity finance and investment from time to time.
Clarissa has a background in legal and professional publishing, as well as business journalism and holds an MBA from Cass Business School. She has been one of the judges for the non-profit category of the Chartered Institute of Marketing's Excellence in Marketing Awards for the second year running.
She has also acted as clerk to the trustees of a small almshouses charity and as a member nominated trustee to a pension scheme of a multinational publishing company.
Click here for other articles written by Clarissa Dann
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