Funding, Fundraising, Sponsorship, Foundations, Crowdfunding, Donations
Overview

Author: Mag. Jürgen Partaj

You want to establish a concert series, a festival, a film or theater project, release a CD, or plan a concert tour – and you are now wondering what possibilities exist to secure (additional partial) financing from public sources, from companies, from foundations, or from the crowd?
Most of the financing instruments presented here can only be utilized by (non-profit) associations and/or private individuals, although there are also grants that can only be applied for by companies. Therefore, before you launch your project, it pays off to consider the appropriate choice of legal form right from the beginning.

Whether it is grants, sponsorship, foundations, crowdfunding, etc., it always comes down to one thing: it requires an investment of time and energy to pursue the corresponding fundraising methods – but it can also pay off significantly! Exchange ideas with colleagues and consult advisory institutions as well as industry professionals to make the right choice among the most appropriate financing instruments and then invest time and energy into them.
 

Public Funding

For your project, public funding (from public authorities) can be of interest on several levels: Europe, Federal, States, Regions, Municipalities/Districts
 

EUROPE
At the European level, there are, for example, funding opportunities in the context of Structural Funds, Regional Funding, Action Programmes, and Special Programmes, notably including:
 

• www.creativeeurope.at Desk/Team in Austria: all calls for proposals, workshops, best practices, etc.
• www.europa-foerdert-kultur.eu Information on approximately 20 EU funding programmes which, in addition to the CREATIVE EUROPE programme, may also be relevant for cultural projects (through certain intersections): Social Affairs, Integration, Education (Erasmus+), Youth, European Year of Cultural Heritage, Regional Development, ...
   

FEDERAL
Federal Ministry for Art, Culture, Public Service, and Sport
Annual Funding, Project Funding, Funding for Composers, Grants for Concert Tours, Tour Funding, Distribution and Reproduction Funding, Scholarships, etc.

Also consider other ministries if your art/culture project encompasses other areas: Youth/Education/Integration/Labour/Social/Foreign Affairs/Economy/Women/Health/Family Ministries.
Also, inform yourself about institutions such as SKE Fonds, GFÖM, KulturKontakt Austria, LSG, and the Austrian Music Fund!

Detailed information can be found on the website of www.musicaustria.at.
 

STATE
In every federal state there is the possibility to apply for funding in the field of art/culture; for example, in Vienna the primary responsibility lies with Magistrat Department 7 (MA 7).

But even at the state level, it pays off to consider other funding bodies:

MA 13: Education and Out-of-School Youth Care: e.g. Vienna Education Labyrinth, Annual Focus Areas
MA 17: Integration and Diversity: Annual Focus Areas, e.g. Anti-Racism and Anti-Discrimination

Detailed information on funding & financing can be found on the mica website under the "Practical Knowledge" section, as well as at the Cultural Information Service of IG Kultur Wien.
 

CITY/MUNICIPALITY/DISTRICTS
At the level of cities and municipalities (or, in Vienna, at the district level), there are dedicated funding pots available for art/culture projects. In addition to cultural councilors, contacts such as mayors, tourism representatives, youth municipal councilors, etc. can be helpful.
 

Sponsorship

Sponsorship is a cooperation with companies that, unlike grants or donations, is based on the principle of reciprocal benefits (i.e., exchange of services). Under a sponsorship agreement, you provide the company with a package of services, and in return, you receive the agreed-upon services from the company. There are various types and hybrids of sponsorship, such as cash sponsorship (a financial contribution from the sponsor), in-kind sponsorship (e.g. tour bus, beverages for an event, provision of instruments), service/time sponsorship (taking on tasks (e.g. preparing the annual financial statement)) or it can also take the form of a distribution partnership (using the company’s internal intranet as a distribution channel). Contacts for you may include: CEO, Chairperson of the Supervisory Board, Marketing/PR Department, CSR Department, Human Resources and Training Department, Works Council.

Your services depend greatly on the type of project with which you approach the sponsor. Mere logo presence on the website or printed materials now rarely leads to successful sponsorship. Create a vivid yet concise description of your project! Bundle sponsorship packages (with varying content for title sponsor, main sponsor, program sponsor, youth sponsor, etc.), let your creativity flow, and then tailor your services (based on the packages) individually to the company. Exchange ideas with colleagues and friends; be open to learning from other cultural projects as well as from other sectors (sports, social, environmental, etc.). Discuss within your team what could be part of the sponsorship, what you can offer, and what you need. For a needs analysis, it is also helpful to closely examine the project’s cost centers – only then can you see where savings can truly be made. A sponsor can also serve, for example, to offer the audience added value or a service that was not previously available (e.g. shuttle service from a mobility partner).

Of course, logo presence along with a ticket allocation for your concert can be part of the sponsorship package, but also try to adopt a shift in perspective from “us, us, us” to “for your company, your benefit, for you…”: what does the company need, what (from your services) can provide significant benefit to the company, perhaps saving otherwise necessary expenses? With this approach, you can considerably increase the value of your sponsorship package!

Apart from companies, you should also consider institutions such as the WKO, the Federation of Austrian Industries, the Farmers' Association, the Chamber of Labour, the ÖGB, the VÖGB, churches, the volunteer fire brigade, the student body, etc. as potential cooperation partners; they can also support you with various services (printed materials, community halls, distribution networks, ...).

Even in sponsorship, there are experienced professionals who can be enlisted to support you. While this does incur costs for your project, it can significantly increase your chances of success. But in this case as well, it holds true that fundraising is not solely the responsibility of a single sponsorship person; rather, it must be actively supported by the project’s leading team – also in the context of networking!

For information, webinars, and best practices, see, for example, fundraising.at and fundraiso.ch
 

Foundations

The term “foundation” has different meanings in various countries and is used in different forms in Austria as well. In any case, many non-profit foundations and some private foundations have set themselves the goal of enabling or supporting projects in a wide range of sectors with their grants – many also in the art/culture sector. It is important for you to note that foundations may only pursue their defined purpose, so you should carefully check before submitting an application whether your project falls within that purpose. Often there are detailed application criteria – before investing a lot of time in an “uncertain” application, it is advisable to inquire directly with the foundation and obtain the necessary information! Foundations are often active not only in their own country but also internationally or in the German-speaking region. Therefore, foundations from Germany, Switzerland, and Liechtenstein may also be of interest to you. Here are a few addresses that may be helpful for further research:
 

Crowdfunding

Crowdfunding projects are organized over the Internet; the goal is to inspire a large number of people for the project and convince them to support it in various ways (usually with money). Generally, the principle is: all or nothing – that is, if the crowdfunding goal is not reached, the supporters get their money back. There are numerous ways to engage the “crowd”; this can be, for example, traditional crowdfunding, donation-based crowdfunding, crowdinvesting, crowdsourcing, or crowdlending.
For your projects, traditional crowdfunding, where supporters receive a non-financial return, will probably be of primary interest – perhaps also donation-based crowdfunding (event-based online fundraising). In crowdfunding, it generally makes a significant difference whether you already have a “crowd” via social networks that you can utilize for the campaign, or whether you have to build that crowd from scratch. Even though the financial aspect is usually at the forefront, a crowdfunding campaign can also serve to build this crowd (for future projects as well). It is a strategic decision whether to pursue crowdfunding; do not forget that the rewards, AFTER reaching the goal, also require a lot of time and energy. The earlier you begin planning, the higher the output you can achieve!
Crowdfunding platforms, for example: crowdfunding.de (good overview with search criteria), wemakeit.com, crowdfunding.at, startnext.com, kickstarter.com
 

Donations, Patrons, Funding Associations

Even with donation campaigns (apart from online campaigns), significant financing successes can be achieved (e.g., through many small donors or also through patrons). When initiating these, you should also inform yourself about the topics of “tax deductibility of donations” and “donation quality seals” or seek advice on them.

Building funding associations and support circles pays off in the long term, but it hardly brings any immediate financial (!) benefits.
 

Consultations

There are excellent advisory opportunities for you, for example, at mica; however, also contact the funding agencies or foundations directly, as they are happy to provide information on the possibilities, the recommended procedures, and the current submission deadlines! Even with professional fundraisers/agencies, the initial consultation is usually free or very inexpensive! The advice/information you receive from the respective agencies can also help you from the outset in determining the most sensible approaches to additional financing instruments for you.