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A report from the Association for Cultural Enterprises, a charity and trade body for the arts, heritage and cultural sector in the UK, has found that 95% of cultural organisations generate turnover from commercial activity, which makes up almost 40% of their annual income.
It states that, with core funding being restricted, commercial income is “more vital than ever to financial sustainability”.
“The data and insights captured in the benchmarking study shine a light on the importance of commercial revenue generation in the cultural sector,” said the body’s chief executive Gordon Morrison.
“At a time of unprecedented cuts to core funding and ever-rising costs, our comprehensive study demonstrates that cultural organisations of all shapes and sizes are increasingly focussing on commercial opportunities to provide them with the financial means necessary to deliver on their vital charitable aims.”
The report is based on research from 335 organisations between April and June 2024, with an overall response rate of 50% which is claimed to have “created a robust data set”.
It was commissioned in order to gain insights that are aimed at establishing sector benchmarks, and support members in commercial and operational decision making.
“It is particularly telling that almost 40% of total income is now generated through commercial means, substantially more than income generated from fundraising activities or the receipt of grants,” Morrison said.
“The Association’s mission to support cultural organisations to maximise their commercial returns through education, training and the sharing of best practice has therefore never been more vital to the sector.
“This important study supports our mission by providing cultural organisations with clear benchmarks for performance measurement as well as guidance and case studies on how to achieve the best possible commercial results.”
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