From the environment to immersive experiences: What is the future of Arts Sponsorship?

The financial foundations of arts and culture organisations in the UK are not in great shape, according to recent findings by industry insiders.?

Earlier this year, for example, the Campaign for the Arts and the University of Warwick published a report which argued that the UK has one of the lowest levels of government spending on culture among European nations. It added that the UK was one of the small minority of countries to reduce culture spending between 2010 and 2022. According to the report, local government, DCMS and Arts Council funding all dropped, with only contributions from the National Lottery helping offset the decline.

A similarly sobering picture also emerged from an investigation by Arts Professional in partnership with financial benchmarking company MyCake. Here, analysis of a cohort of 2,800 organisations across the country that filed accounts for every year since 2018 showed they posted a combined deficit of ￡117.8m in 2023. This represents a huge decline in their financial health compared with 2022.

At this juncture, you might suppose there is an opportunity for sponsors to step in. But corporate funding has become increasingly problematic in light of recent activism. Protests against sponsors with links to oil & gas, or that are perceived to be supporting Israel’s activities in Gaza, have become increasingly impactful. While BP has been a high profile target for activists for several years, recent decisions by Barclays and Baillie Gifford to cut short cultural-themed sponsorships show that financial services is increasingly seen as fair game. This is acutely troubling for arts institutions. ?Barclays contines to have strong relationships with Sadlers Wells and Donmar Warehouse. ?

The tension around issues such as the environment and Gaza is so heightened now that arts institutions find themselves having to fend off questions about sponsors on a regular basis. At the National Theatre’s announcement of its autumn 2024 programme, for example, a question was raised about the theatre’s relationships with Delta Airlines and BNP Paribas, a long-standing partner of the UK arts sector. The appropriateness of these partnerships then became the focal point of a story in The Standard.

There’s no easy solution to this problem; and there is a robust debate to be had about whether financial services firms and airlines deserve to be bracketed alongside oil & gas. But the good news is that there are still numerous brands from other sectors that see value in arts and cultural sponsorship. Here are a few examples:

Claridge’s: Sponsored by Claridge’s, the Royal Academy of Arts Schools Arts Prize is a three-year partnership that launched in 2023. A finalist in the 2024 UK Sponsorship Awards (UKSA 2024), the winner of The Claridge’s RA Schools Art Prize is selected by a panel of expert judges and receives a prize amount of ￡30,000 to fund a solo exhibition. The goal is to embed the Claridge’s brand authentically within the art world – but it’s also a good illustration of how the hotel sector, art and education can dovetail.

German National Tourist Office: Another UKSA 2024 finalist, the German National Tourist Office made the bold decision to sponsor ENO’s The Rhinegold. The partnership was an attempt to bounce back from Covid-19 by promoting tourism to Germany, particularly eco-tourism. GNTO’s sponsorship of ENO’s The Rhinegold was a perfect match, providing access to an audience with an interest in German culture and the financial means to visit. And it took care to highlight its eco-credentials. There are numerous tourist boards around the world that could use this as a template.

MINI: Sponsored by MINI and entered by Wasserman Experience, Nice to Meet You Again was an activation at the London Design Festival. Located at Shoreditch Electric Light Station, it paid tribute to the classic MINI character while also showcasing a vision for the future. The partnership, which emphasised human connection and unity, gave visitors the opportunity to engage in workshops, with ticket proceeds going to charity. Again, the client placed a strong emphasis on its green credentials.

T&R Theakston Limited: Sponsored by T&R Theakston, the Theakston Old Peculier Crime Writing Festival in Harrogate has developed into a key platform through which to market the Theakston Old Peculier brand to a national and international audience. Over the course of 20 years, it has delivered a substantial increase in brand awareness with book buying consumers – and was extended again in mid-2024. The drinks industry has always been a strong partner to the arts, with Becks, Hennessy and Champagne Pommery among the many brands that have supported the arts.

Zooz Elevate: Non-alcoholic wellness drink Zooz Elevate launched in the UK in September 2024. As part of of its marketing plan, the mushroom-enhanced drink has launched a programme to celebrate the creativity of emerging artists. Zooz Elevate is selecting five painters and musicians who will be invited to the Zooz studio for a day each. The artists whose work encapsulates the brand will be invited to work with Zooz as creative ambassadors and have the opportunity to exhibit or perform in London.

UNIQLO:?Retailer UNIQLO has partnered the Tate Modern for several years, evolving the partnership along the way. Between 2016 to 2020, UNIQLO Tate Lates attracted 550,000 people while, more recently family programme UNIQLO Tate Play has offered activities, events, and digital content to encourage creativity and art exploration.?In 2024, the partners announced that their first collaborative collection, ‘Curated by Tate’ had launched in UNIQLO stores all over the world. The partnership underlines the power of retailers as a platform for art, and also the benefits of longevity.

Toshiba: In 2022, Toshiba extended its sponsorship of the Toshiba Gallery of Japanese Art at the V&A until 2031. This announcement continues Toshiba’s long standing association with the V&A which dates back to 1986. The Gallery is one of the largest permanent galleries of Japanese art in the UK and displays over 550 objects from the museum’s collection. Clearly, museums have to tread carefully when it comes to the provenance of international objects in their collections, but this partnership underlines the opportunity for sponsorships based around cultural celebrations.

Workman LLP: Workman?is an independent commercial property management and building consultancy firm. It has a partnership with the Natural History Museum that champions urban biodiversity. Through the museum’s Urban Nature Project (UNP) the partners aim to protect urban nature and encourage an appreciation of sustainability and biodiversity. As part of the UNP, the Museum has transformed its five-acre site to provide an accessible, free-to-visit green space. Workman says “sustainable construction – from a diesel-free site and no waste sent to landfill to harvesting rainwater for the plants – has been at the heart of the redevelopment.”

For The Record: Examples of financial services sponsors

Morgan Stanley: Somerset House & the Courtauld Partnership

Credit Suisse: National Gallery

Deloitte: Royal Opera House, Ulster Orchestra

Deutsche Bank: Playing Shakespeare, Shakespeare's Globe

Virgin Money: Edinburgh Festival Fringe Society

St James’s Place: Sky Arts

EY: Tate Arts Partnership

UKSA has written numerous stories about arts sponsorship down the years, exploring trends, highlighting major players and assessing the rationale for getting involved. Here, as a reminder, are a few key benefits that the sector provides:

Diverse audience: Clearly, brands can come to their own conclusions about the value of the head count that passes through an arts institution (and its website). However there’s more to arts sponsorship than topline audience. The arts tend to attract specific demographic clusters that may be hard to reach through other channels. Free events at museums, for example, are a magnet for families; while big ticket cultural events skew towards upmarket audiences – with either money or influence. In addition, the nature of the arts is such that it can be used to build positive attitudes among consumers by linking the sponsor’s brand with innovation, culture and creativity. Furthermore, the UK’s leading cultural institutions are global brands with global ambitions – a point some sponsors have recognised. For example, 2016 saw the RSC embark on an international tour – supported by financial services group JPMorgan.?

Staff engagement & cultural renewal: The arts are a great way to engage with staff and to help them establish new skills and mindsets. They have the ability to take people out of their comfort zones and place them in contexts that enable them to explore new perspectives and ways of seeing themselves. Arts-based initiatives can shine a spotlight on the profile of a business and helping explore issues through the prism of creativity and social intelligence. Clearly arts sponsorship is also a superb corporate hospitality avenue, opening up performance and venues to key partners.

Community outreach: Arts organisations often have excellent outreach activities. This can provide the platform for businesses to connect with local communities. Brands that incorporate the arts into their CSR strategies can strengthen their reputations for good corporate citizenship. The arts also provide a credible tool for communicating with schools nationwide. As a related point, there is a wealth of opportunities across the nations and regions. With careful planning, sponsors can create a big media impact by sponsoring across a range of regional arts institutions.

Immersive experiences (digital and IRL): Several UKSA entrants over the years have showcased their use of technology as a way of connecting with a younger and more geographically diverse audience – so there is much more to arts sponsorship than what takes place within the exhibition halls and auditoria. Arts institutions have also got much better at breaking down the barriers between art and audience. Arts institutions have some of the world’s most amazing talent and venues at their disposal, which creates an opportunity to build unique corporate and commercial experiences.

Final Thought

As a final takeaway, here is what EY has to say about a key reason for its involvement in arts sponsorship: “The cultural sector is a driving force of creativity and innovation, two essential pillars to economic growth and societal wellbeing. We recognise the arts also provide an important sense of connection and an outlet for our emotions.

The UK Sponsorship Awards is the leading awards event for Arts Sponsorship. For companies interested in entering the 2025 edition, follow this?link?for more details. Arts entries are free until the early bird deadline of December 20th.