Funding initiatives and projects

As a creator, organizer or artist, you almost always have to deal with financial issues. In many cases you incur expenses to achieve your goal. That is why you have to draw up a budget that shows what costs you will incur and the amounts involved. You will have to cover those costs with income. Sometimes you are lucky enough to have enough money in your bank account to pay for it all yourself, but in most cases you will have to arrange financing to cover the costs. Fortunately, there are many different ways to accomplish this. In fact, there are several sources of finance. Their content is related to the type of initiative or project you are undertaking.

Types of funding sources

For each initiative or project, consider what sources of funding are appropriate. In some cases it is not possible to apply for a grant and in other cases it may not be desirable or possible to find sponsors. So the choice of a funding source always begins with the analysis of your own initiative or project. Below are some possible forms of funding and when you click on a link you can find even more information about them:

• Audience income These are contributions from visitors or customers, for example. They can buy something from you or they spend money around your initiative or project. There are many possibilities and you can often deal with this in a fun and creative way. Think for example of the sale of entrance tickets or catering revenue.
• Sponsorship When we talk about sponsorship we are talking about a contribution from the business community. A sponsor gives you money or resources for your initiative or project and, in most cases, expects something in return.
• Grant For some initiatives or projects it is possible to apply for a grant. This is a contribution from the government such as a municipality, a province or the central government. Grants come in different forms and the way you can apply for them varies for each grant.
• (Private) funds Whereas grants involve financial contributions from the government, there are also resources available from organizations or (private) funds. These in turn may have received funding from an estate or from companies. For example, consider the VSB fund or the Bankgiroloterij fund). They can then distribute these funds to those trying to claim them.
• Crowdfunding In crowdfunding, you use your target audience to raise capital in advance for the realization of your initiative or project. You offer them the opportunity to pledge a certain amount in exchange for a consideration.
  

A mix of funding sources

In the most ideal situation, you make sure you have a mix of different funding sources. The main reason for this is the fact that you don't want your activity to depend on one source.

Both sponsors, funds and grant makers expect you to have other income in addition to their contribution. It may be that one of the sources, for whatever reason, ceases to exist or is a lot less than you expected. For example, fewer visitors may come to see your production, reducing your audience income. You may also be able to use a subsidy for the first few years but after a few years it will no longer be available. A mix of income sources makes your organization or project a lot more secure. In addition, grant makers almost always ask if you also have co-financing because they cannot contribute the entire amount.

A grant application often asks to what extent you can demonstrate cultural entrepreneurship. It is also easier to convince a potential sponsor when you can show that you can get money through other means. All in all, it adds to the professionalism of your initiative or project.

If, from your expertise, you yourself have knowledge that would fit this topic, or if you see opportunities to improve this text, we look forward to receiving your message at info@cultuuracademy.nl.