International Activity of arts and cultural …...International Activity of arts and cultural...

International Activity of arts and cultural organisations in 2014-15

For Arts Council England

International Activity of arts and cultural organisations in 2014-15

For Arts Council England

Prepared by TBR’s Creative & Cultural Team

Enquiries about this report can be addressed to;

Sam Nair, Project Manager

Martin Houghton, Project Director

16 November 2016

Floor D, Milburn House

Dean Street Newcastle upon Tyne, NE1 1LE

Telephone: +44 (0) 191 279 0900

Fax: +44 (0) 191 221 2220

Email: [email protected] www.tbr.co.uk

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Document Information

© TBR

Document Information

Project Reference Number: PN01215R

File Name: ACE_International_Activity_Final

Title: International Activity of arts and cultural organisations

Version number: V1

Last update: 16/11/2016

Name of Author: Sam Nair, Martin Houghton

Name of Reviewer: Sara Selwood, Mary Marshall

Document Status: Confidential

Review Status: Reviewed

Approval Status: Approved

Table of Contents

© TBR

Table of Contents

SUMMARY .......................................................................................................... 3 1.

1.1 OVERVIEW OF INTERNATIONAL ACTIVITY .......................................................................... 3

1.2 HOW VARIABLE IS INTERNATIONAL ACTIVITY .................................................................... 5

1.3 NON-FINANCIAL IMPACTS OF INTERNATIONAL ACTIVITY ...................................................... 6

1.4 INTERNATIONAL ACTIVITY BARRIERS AND SUPPORT NEEDED ................................................ 7

1.5 CONCLUSIONS........................................................................................................... 7

INTRODUCTION ................................................................................................. 9 2.

2.1 ARTS COUNCIL ENGLAND INTERNATIONAL WORKING ........................................................... 9

2.2 ABOUT THE STUDY ................................................................................................... 10

OVERVIEW OF INTERNATIONAL ACTIVITY ..................................................... 13 3.

3.1 THE PREVALENCE OF INTERNATIONAL ACTIVITY ............................................................... 13

3.2 THE ECONOMICS OF INTERNATIONAL ACTIVITY ................................................................ 14

3.3 THE COUNTRIES INVOLVED ......................................................................................... 16

HOW VARIABLE IS INTERNATIONAL ACTIVITY? ............................................. 20 4.

4.1 DIFFERENCES BY ARTFORM ......................................................................................... 20

4.2 DIFFERENCES BY LOCATION ........................................................................................ 23

4.3 DIFFERENCES BY SIZE OF NPO .................................................................................... 23

4.4 DIFFERENCES BY MATURITY OF INTERNATIONAL BUSINESS MODES ........................................ 24

NON-FINANCIAL IMPACTS OF INTERNATIONAL ACTIVITY ............................. 28 5.

5.1 MOTIVATORS .......................................................................................................... 28

5.2 BENEFITS .............................................................................................................. 29

5.3 SOURCES OF ASSISTANCE ........................................................................................... 30

INTERNATIONAL ACTIVITY BARRIERS AND SUPPORT NEEDED ..................... 32 6.

6.1 BARRIERS .............................................................................................................. 32

6.2 SUPPORT REQUESTED ............................................................................................... 33

CONCLUSIONS ................................................................................................. 35 7.

7.1 ACE AND SUPPORT FOR INTERNATIONAL ACTIVITY ........................................................... 35

7.2 FINANCIAL RETURNS FROM INTERNATIONAL WORK ............................................................ 35

7.3 NATURE OF INTERNATIONAL WORK ............................................................................... 35

7.4 DIFFERENCES ACROSS ARTFORM .................................................................................. 36

Table of Contents

© TBR

7.5 OTHER MOTIVATIONS FOR INTERNATIONAL WORK ............................................................ 36

7.6 SUPPORT TO ENCOURAGE ADDITIONAL INTERNATIONAL WORK ............................................. 37

GLOSSARY ....................................................................................................... 38 8.

Summary

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Summary 1.

This document presents the key findings from a research project carried out by TBR and its partners,

Sara Selwood Associates and Qa Research, for Arts Council England (ACE), into the international activities

of its National Portfolio Organisations (NPOs).

ACE is the national development agency for the arts in England, distributing money from the Government

and the National Lottery. They have a 10-year strategic framework running from 2010 to 2020 to support their mission of ‘Great art and culture for everyone’. This strategy contains five goals, two of

which directly relate to international activity: Goal 1 is to promote and support excellence within the arts,

museums and libraries; and Goal 3 seeks to ensure that the arts, museums and libraries are resilient and environmentally sustainable.

ACE subsidy helps to cover the core costs of NPOs, who may or may not be working internationally. The primary focus of this funding is to benefit artists and audiences in England. However, it is clear that these

core costs include the funding of overheads, including staff and company costs and the origination of work, all of which are fundamental to undertaking international activity. International exchange and

showcasing work overseas also contribute strongly to the development of English artists and to

companies’ reputations here at home. Importing international activity makes exciting new work available to English audiences, while taking talent abroad helps promote the best English artists to find new

audiences overseas. ACE recognises the many beneficial effects of international working on the arts ecology in this country and, from 2015, has provided a range of additional mechanisms for supporting

such efforts.

This document comprises six main sections:

1. An introduction that sets the scene and presents the methods used in the research.

2. An overview of international activity undertaken by the NPOs.

3. Analysis of the differences in international activity across artform, geographic location, size of

NPO, and the maturity of international activity business models.

4. A review of the non-financial aspects of international work.

5. A consideration of the barriers and challenges faced by NPOs, along with the kinds of support

that they identified as necessary to address them.

6. A round-up of the findings and associated conclusions.

The research comprised two main elements: a telephone survey of NPOs and interviews with a selection of NPOs across the artforms. Out of the population of 663 NPOs, 426 completed the survey (64%),

ensuring that the research was robust1. Details comparing the research sample to the population, by

location, artform, size and funding are provided in the Introduction (Section 2).

However, we do sound a note of caution in relation to some of the financial data in that not all NPOs

were able to provide the full range of information requested and it is possible that revenues and costs may not always have been allocated consistently to international activities.

1.1 Overview of international activity

Section 3 provides the headline findings from the research. Due to the diverse nature of the NPOs and large sample, the data presented are directly from the research, with no attempt being made to gross to

the population.

1 The degree of statistical robustness diminishes as the sample size reduces, so some caution is required when considering the more detailed results, eg a single artform within a region. Statistical tests are provided in the document.

Summary

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The research shows that 65% of the NPOs (276 out of 426) had undertaken international activity at some stage in the last three years. In 2014-15, 55% of NPOs were involved in international work. In the

majority of cases, the extent of international activity was limited to five or fewer projects, though two

NPOs reported working on over 100 projects. Overall, NPOs indicated that they were undertaking more international work (number of projects) than in the past and that the variety of work itself was

increasing.

As this suggests, the type of activity undertaken was wide-ranging, and included: UK artists undertaking

residencies abroad (28%); hosting foreign artists (46%); touring (47%); undertaking co-productions (59%) or taking UK artists abroad (61%).

In terms of the economics of international activity, the research sought to understand the total revenues

generated and what the sources of income comprised, against the associated costs.

NPOs were found to generate their revenues, both domestic and international, from four main sources:

earned income (e.g. box office takings); ACE subsidy, although this was principally intended for work in England; contributed income (e.g. sponsorships and donations); and public subsidies.

Figure 1: Reported levels of international income from different sources

Source: TBR Ref W1/C1/Figure 6

Of the 276 NPOs who reported working internationally, 243 NPOs were able to provide us with financial

details of their total income from international activities. These NPOs secured total income (including earned income and subsidies) of £34 million for international work in 2014-15, an average of £139,500

per organisation. This represented 7% of their total of £475 million for all activities.

A total of £18.5 million was generated in earned income by the 229 NPOs that were able to provide this

information. Eight NPOs reported generating more than £1 million (total revenues) from their

international activity. Contributions and public subsidies, compared to earned income, were relatively less important in value to NPOs as sources of revenue for international work.

On the whole, international activity made a net financial contribution to NPOs, so enhancing their economic sustainability and resilience. Overall, NPOs generated £34 million from international work,

against costs of £31 million, thus delivering a surplus of 9%. Looking solely at these totals across the portfolio can mask the range and differences in income from international activity amongst NPOs. For

example, where we discuss variations between NPOs later in the report, we see a large number of NPOs

with a smaller than average amount of income from international work, and a small number of NPOs with a much larger than average income.

It is also important to take into account the wider impacts of NPO expenditure on international projects. For example, NPOs who worked on co-productions or larger collaborative projects contributed £5.9

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Summary

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million to international projects that, in total, incurred costs of £16.5 million. Thus, ACE funding could be seen as levering in an additional £10.6 million.

NPOs were active around the world, with Europe, North America and the Commonwealth proving the

most popular destinations. This underpins the importance of the English language and geographical proximity of continental Europe.

Figure 2: Breakdown of all international projects by continent

NPOs reported that they faced a range of challenges when working internationally. These included language, logistics, cultural differences and political freedoms.

1.2 How variable is International Activity

Section 4, seeks to explore how the nature and extent of international activity varied across artforms, geography and size of NPO.

It is clear that there was some variation in the proportion of NPOs working internationally by artform. Dance (76% of 38 NPOs), literature (75% of 28 NPOs) and visual arts (72% of 78 NPOs) organisations

were most active internationally, compared to combined arts (58% of 97 NPOs), theatre (59% of 122

NPOs) and music (63% of 49 NPOs).

Average revenues generated from international activity ranged across the artforms. It would seem that

while international activity was relatively widespread, the extent of this, as measured by total revenues, varied by both artform and by NPO. This would appear to reflect the variety within the arts and cultural

sector in England.

Summary

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Figure 3: Average earned income from international activity

Source: TBR Ref W1/C1/Figure 4

Earned income (not including subsidies) generated directly by NPOs also varied across the artforms.

Music projects appeared to be the most lucrative in terms of earning income for NPOs. Whilst making up 17% of international projects by NPO, music accounted for 33% of earned income. Furthermore, these

NPOs managed to generate surpluses of 56%, suggesting they retained over half of their earnings.

When looking at individual organisations, NPOs in the South East were most likely to work internationally,

with 76% doing so, compared to 69% in the capital. London’s NPOs also were responsible for over half (53%, or £18 million) out of a total of £34 million of all revenues from international activity. NPOs in the

capital were even more successful in generating earned income, with 61% of the total.

1.3 Non-Financial Impacts of International Activity

In Section 5 of the report, we look at the non-financial impacts of international activity. It is clear that

the NPOs surveyed were primarily motivated to undertake international activity for reasons other than financial. Showcasing their work, gaining experience and learning from different cultures, and placing

work in a global context were the main drivers.

There was some difference between artform but, in the main, this was only a matter of degree. There

was no discernible difference in the selection of motivators based on the location of the NPOs.

Having enquired about the motivations to undertake international work, we asked about the benefits gained. Nearly all NPOs (95%) identified improved reputation as a benefit. The other leading benefits

were artistic and professional development, and being part of the international arts landscape. Again, financial returns were less important. There was little difference in the way NPOs responded by artform.

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Visual arts

Summary

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Figure 4: Benefits gained from international activity (out of 276 NPOs)

Source: TBR Ref W1/S8/Figure 2

Also within Section 5, we examine what had assisted the NPOs’ ability to work internationally. The vast majority reported that their reputation was the greatest factor in their ability to undertake international

work. This might reflect the fact that these NPOs had already achieved a degree of success and hence

reputation. Other important factors cited were existing relationships with international arts organisations, and experienced staff, directors and board members.

Overall, NPOs felt that the greatest sources of assistance derived from within; reputation, existing relationships and the experience of their people. By contrast, external assistance was deemed relatively

less important.

1.4 International Activity Barriers and Support Needed

Section 6 studies the barriers to undertaking international activity and the support needed to encourage

further work. The two largest barriers to NPOs pursuit of international work, by a significant margin, were a lack of financial resources and availability of time and staff.

1.5 Conclusions

Finally, in Section 7, we bring together the findings of the research and conclude that:

Significant numbers of NPOs are involved in international activity.

While there are differences in the NPOs, in terms of artform, location, size, extent of

engagement, these are merely a matter of degree.

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Summary

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International activity represents an opportunity for NPOs to improve their financial resilience and

sustainability. While financial returns, on average, appear to be limited, there are significant differences across the artforms and between NPOs.

Revenues in the form of earnings (e.g. box office takings and fees) represent the primary source

of income from international activity. Music and dance NPOs have been most successful in generating earnings (92% and 76% of all revenues respectively). Thus, the opportunities favour

those organisations that are proactive and are willing to exploit international projects as a way of

diversifying their revenue streams. It appears that music NPOs have, on average, generated surpluses of 56% from international

activity, suggesting that they have achieved significant financial benefits from it.

Looking at the quantitative and qualitative data as a whole, we can conclude that generating

revenue from international activity represents an enabling factor for NPOs. Thus, it is not a motivator, per se, but having sufficient funding is a necessary precondition for NPOs to continue

functioning.

There is a virtuous circle in which improving the quality of output and enhancing an

organisation’s reputation leads to more successful international activity and greater financial rewards.

Introduction

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Introduction 2.

2.1 Arts Council England international working

Arts Council England (ACE) has five strategic goals at the heart of its mission and ten-year strategy to

ensure ‘Great art and culture for everyone’. International activity delivers against:

Goal 1: Artistic excellence and talent development – one of ACE’s targets is that England is

known as a world centre of artistic excellence and that visitors cite the arts as a reason to visit

England. Goal 3: economic resilience and diversification of income sources. This is an enabler of Goal 1, as

a more economic resilience and sustainability allows for the greater development of talent and

opportunities.

ACE’s work to enable international activity of arts and cultural organisations is key to achieving these.

ACE refreshed its approach to international working in 2013 on the basis of the three principles of exchange, partnership and growth, each working towards the two strategic goals summarised above:

ACE supports international work to enrich the cultural landscape and develop artistic talent

through exchange and collaboration;

ACE works in partnership with the British council, UKTI and others, and

ACE seeks to improve organisational resilience and enable economic growth through international

activity.

ACE’s programmes to support international work that were available to the NPOs over the period covered

by the research included:

Artists' International Development Fund (AIDF): Jointly funded by the British Council and

ACE, this offers development opportunities for individual artists and/or creative practitioners

based in England to spend time building links with artists, organisations and/or creative producers in another country.

The Strategic Touring Programme: This funds touring work, focusing especially on areas

where people have low levels of engagement with the arts, and those that rely on touring for

much of their arts provision. It also seeks to extend the reach of high quality work by broadening the range of venues presenting it. There is additional money in the Strategic Touring programme

specifically to encourage venues and producers to book tours of outstanding incoming international work.

Three further programmes were added in 2015. As such, they do not fall within the period covered by the

research.

International Showcasing fund: This aims to grow new markets and audiences abroad for

arts and culture from England. ACE seeks to amplify and maximise the impact of international

showcasing activities. Ambition for Excellence: This programme is aimed at stimulating and supporting ambition,

talent and excellence across the arts sector in England. It aims to realise significant impact on

the growth of an ambitious international-facing arts infrastructure, especially outside London. Re-imagine India: This is a cultural exchange programme, designed to develop creative

collaborations between arts and cultural organisations in England and India. Its purpose is to

create new work and to build sustainable networks and partnerships between artists and cultural

leaders in both countries, as well as to develop an intercultural dialogue and strengthened cultural relations based on sharing ideas, knowledge, work and artistic practice.

Introduction

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In this context, ACE commissioned this research to gather evidence on the current extent and value of international activity undertaken by its NPOs, the nature of this activity, and challenges and successes

experienced by NPOs working internationally.

2.2 About the study

ACE is committed to encouraging international arts and culture. Not only does it enrich the quality and

variety of cultural activity available to audiences in England, it also adds to the value of exports generated by English artists and companies. Goal 1 of the ACE’s ten-year strategy includes a

commitment to demonstrating England’s status as a world centre for cultural excellence. Furthermore, ACE, as part of the UKTI-led Sector Advisory Group is committed to doubling export values and the

number of small and medium-sized enterprises seeking export readiness by 2020.

In order to measure progress and to identify areas of opportunity and challenge, establishing a baseline of activity was necessary. It was also important to understand how international activity impacts on a

range of financial and non-financial organisational outputs. ACE commissioned TBR, working with Sara Selwood Associates and Qa Research, to undertake a programme of research, which led to this report

and associated evidence base about the international activities of the 660 National Portfolio Organisations

(NPOs).

The primary aim of the research was to collect data that would enable us to answer a number of core

research questions, around which the present report is structured:

How widespread is export and international exchange activity amongst NPOs?

What is the estimated economic value of this activity?

What is the nature of this international activity and which countries are involved?

How variable or consistent is international activity across NPOs? (e.g., by size; artform or cultural

focus; location; experience and maturity of the business model.)

What are the non-financial impacts of international activity for the NPOs and do these align with,

or contradict, financial outcomes? What opportunities and challenges do NPOs associate with developing their international

activities?

This study involved delivering a telephone and on-line survey of NPO organisations in 2015. This asked

them about their international activities in during 2014-15. Alongside this, 12 in-depth interviews with NPOs were undertaken to explore the research questions in more detail and to develop a series of case

studies, published in a separate document.

In total, 426 respondents took part in the survey. However, respondents did not necessarily answer all

the questions. They may not have regarded them as applicable to their work, or were unable to access

the necessary information.

The remainder of this document describes the findings of the survey and interviews. Data from ACE’s

annual survey of NPOs has also been used in this analysis. For the sake of statistical reliability, the results presented relate to the 426 organisations that completed the survey. No attempt has been made

to ‘gross’ the data to the population. Rather, our concern has been to indicate the robustness of the

results, and we compare the sample to the population using a range of metrics including: geography; artform; size of organisation; and level of funding.

The sample that took part in the survey is compared to the population of NPOs and analysed across a range of attributes. The results are presented in Table 1 to Table 4, below.

The proportional breakdown of survey respondents by area, artform, employment and ACE funding is almost identical to the breakdown of the NPO population as a whole, which suggests that the survey data

is likely to be representative of all NPOs.

Introduction

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Table 1: Location of NPOs responding to survey

Area Number of respondents

% of total respondents

Population of NPOs

% of NPO population

% of NPO population surveyed

Confidence interval2

East and South East

43 10% 64 10% 67% 8.6%

London 154 38% 246 37% 63% 4.8%

Midlands 52 12% 84 13% 62% 8.4%

North 122 30% 186 28% 66% 5.2%

South West 55 11% 80 12% 69% 7.4%

Total 426 100% 660 100% 65% 2.8%

Source: TBR Ref W1/S1/Table1

The balance of respondents by artform broadly matches that of the population. We do note that, as

some artforms are represented by relatively few organisations, statistical reliability – indicated by the

confidence interval - falls away (Table 2)3.

Table 2: Main artform of NPOs responding to survey

Artform Number of respondents


Population of NPOs

% of NPO population


Confidence interval

Combined arts 97 23% 133 20% 73% 5.2%

Dance 38 9% 57 9% 67% 10.4%

Literature 28 7% 47 7% 60% 11.9%

Music 49 12% 95 14% 52% 9.8%

Non-artform specific

14 3% 23 3% 61% 16.8%

Theatre 122 29% 176 27% 69% 4.9%

Visual arts 78 18% 129 20% 60% 7.0%

Total 426 100% 660 100% 65% 2.8%


Details of the sample, when analysed by employment, are presented in Table 3, below.

2 Tests of statistical reliability are provided at 95% confidence levels. Thus, we can be certain, that 95% of the time, the responses provided by the respondents will reflect those of the whole population, plus or minus the confidence interval. The smaller the confidence interval demonstrates more precision in the data and more confidence the data is representative. 3 For statistical reliability, proportionally larger samples are needed for small populations. Thus for NPOs that describe themselves as not being artform specific would require a sample of 19 (or 83% of the population 23) to generate a confidence interval of +/-10%. This compares to a sample of 56 for Combined Arts, which equates to only 42% - which has been exceeded in this survey.

Introduction

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Table 3: Organisation size of NPOs responding to survey

Size cohort Number of respondents


Population of NPOs

% of NPO population


Confidence interval

0-5 141 33% 202 31% 70% 4.6%

6-20 169 40% 234 35% 72% 4.0%

21-50 55 13% 96 15% 57% 8.7%

51-100 23 5% 39 6% 59% 13.3%

101-250 19 4% 29 4% 66% 13.4%

251+ 4 1% 7 1% 57% 34.7%

Total 426 100% 660 100% 65% 2.8%


The smaller number of cohorts in the analysis (as determined by ACE funding) means that there is a relatively good match between the survey sample and the population (Table 4).

Table 4: Level of funding from ACE of NPOs responding to survey

Level of funding from ACE

Number of respondents


Population of NPOs

% of NPO population


Confidence interval

under £100k 93 22% 136 21% 68% 5.7%

100k-250k 161 38% 217 33% 74% 3.9%

£250k-£500k 76 18% 115 17% 66% 6.6%

£500k-1m 41 10% 71 11% 58% 10.0%

£1m+ 40 9% 68 10% 59% 10.0%

Total 426 100% 660 100% 65% 2.8%


Overall, we are satisfied that the survey sample provides a good fit with the population as a whole, and

we can be confident that when using the data from the full sample of 426 NPOs that the data is statistically reliable at a 95% confidence interval.

Overview of international activity

© TBR Page 13

Overview of international activity 3.

In this section we investigate the nature, extent and economics of international work undertaken by the

NPOs. International activity encompasses two main areas:

Inbound. Generally, inbound activities involve an NPO working with an artist, or organisation, from

outside the UK for the benefit of the arts and audiences in England or the wider UK. Such activities may include a musician from overseas playing with an orchestra in England, an international theatre

company’s production or an exhibition of international work. Clearly, the focus is on introducing new

works to the English arts ecology, and granting audiences in England access to such work. Inbound activities may be viewed as an import, especially if costs are incurred from outside the UK.

Outbound. Outbound activities involve NPOs working overseas. These serve to introduce work produced by English organisations to overseas’ arts ecologies, and grant overseas audiences access to

such work. They enable NPOs to engage with partners and form new artistic and funding relationships. Outbound activities can be viewed as exports, especially if revenues are generated from non-UK sources.

3.1 The prevalence of international activity

The survey indicated that most NPOs have undertaken international activity with 65% (276 out of 426) having done so at some stage, and 55% (266) having done so in 2014-15. The majority of NPOs had

only a limited involvement in 2014-15, with 64% (177 out of 276) having worked on between one and five international projects4. At the other end of the scale, 1% (3 out of 276) of NPOs worked on between

50 and 100 international projects, and a further 1% (2 out of 276) on more than 100. From all the NPOs

surveyed, a total of just over 2,200 international projects were undertaken in 2014-15. These projects cover a mix of different activity types with most NPOs being involved in multiple different types, as

shown in Table 5.

Table 5: Types of international project undertaken in 2014-15

Type of activity Number of NPOs % of NPOs5

Taking artists outside of the UK 167 61%

Staff attending festivals 166 60%

Co-productions/ co-commissioning 163 59%

Independently producing or performing 157 57%

Tours 129 47%

Hosting residences for international artists in England 126 46%

Brokerage6 83 30%

Arranging for English artists to have residence overseas 76 28%


NPOs are branching out into more forms of international work with 38% (106 out of 276) saying they

undertook new types of activities in 2014-15 as distinct from those undertaken in the previous two years. Similarly, there is an emerging trend for NPOs to embark on more international activity. More than half

(152 out of 276) of NPOs reported a different level of international activity in 2014-15 than in the

4 NPOs were asked ‘How many international projects did you undertake in 2014/15?’ 5 This represents the percentage of NPOs that have undertaken international activity. NPOs were able to select multiple activities. 6 This involves linking English and overseas artists and organisations with one another to facilitate collaboration and working.


© TBR Page 14

previous two years. Of these, 80% said they were taking on more project activities and 63% said they were doing more networking.

3.2 The economics of international activity

NPOs generated, what we refer to in this report, as international revenues. These derive from four main streams:

Earned income derived from box office takings and royalties.

Contributed income from sponsorship, corporate membership and donations from friends and

members etc. ACE subsidy.

Public subsidies from elsewhere, including local authorities.

ACE subsidy contributes to the core costs of NPOs, who may or may not be working internationally. The

primary focus of this funding is to benefit artists and audiences in England. However, it is clear that these core costs include the funding of overheads, including staff and company costs and the origination of

work, all of which are fundamental to international activity. International exchange and showcasing work

overseas also contribute strongly to the development of English artists and to companies’ reputations here at home. Importing international activity makes new work available to English audiences while

taking talent abroad helps promote the best English artists to find new audiences overseas. So ACE recognises the many beneficial effects of international working on the arts ecology in this country and

from 2015, has a range of additional mechanisms for support.

International activity contributed a sizeable amount to the revenues of NPOs. Across the NPOs that were able to give us details (243 out of 276), the total revenue7 generated by international work in 2014-15

was £34 million (equivalent to 7% of the total revenue for these NPOs, which was over £475 million8). While the average total revenue from international activity generated by NPOs was £139,500 in 2014-15,

this ranged from £17,000 for those NPOs characterised as not artform specific, to £243,500 for music

NPOs. Eight NPOs reported generating over £1 million (total revenue) from their international activity. This wide variation is unsurprising given the range of artforms, business models and audience formats

present in the National Portfolio.

The extent to which international revenue contributes to the total revenues of individual NPOs varies. For

51% of NPOs (123 out of 243), revenue from international activity represents between 1% and 20% of their total revenue. In contrast, just 1% of NPOs see between 80% and 99% of their revenues coming

from international activity.

A small number of NPOs (5 out of 243, or 2%) derive all of their earned income from international work. Whilst being exceptions, these five NPOs do represent a mix of artforms covering literature, theatre,

combined arts, and music. The value of their earned income ranges considerably, with one of the five earning £6,300 exclusively from international activity and one international festival earning £567,100.

Similarly, three of these five NPOs consider 100% of the ACE subsidy to be used for international activity

that ranges from £57,000 to £528,400.

Having reviewed total revenues from international activity, we sought to investigate the individual

component income streams, see Figure 5, below, namely; earned and contributed income, ACE and other public subsidies. It is important to note that not all NPOs were able to provide this more granular

information, and so the figures below do not account for all of £34 million cited above.

7 Total revenue refers to the sum of funds from all sources: earned income, income from sponsorship etc., ACE funding, and other grants and subsidies. The term income is used to describe that element of revenues that is earned from box office takings, royalties as well as sponsorship and donations etc. 8 From ACE NPO Survey 2014-15


© TBR Page 15

Figure 5: Reported levels of international income from different sources9

Source: TBR Ref W1/C1/Figure2

Twenty-nine percent of NPOs (66 out of the 229 NPOs who could provide us with details) told us that

they generated zero earned income from international activity. A further 36% of NPOs (82 out of 229)

generated between 1% and 20% of their total earned income from international activity. A small number of NPOs (6 out of 229, or 3%) secured all of their earned income from international work. This

difference highlights distinctions between arts and cultural organisations, and suggests that the importance of international in terms of earned income varies across organisations, and that some have

developed models focused exclusively on international activities.

We found that 63% of NPOs (140 out of 224)10 who answered this question received no contributed income specifically for international activity. Notwithstanding this, NPOs overall gained a total of £2.7

million of contributed income associated with international activity. Visual arts, music and theatre, on average, secured the largest amount of contributed income to international activities.

NPOs also applied a total of £1.6 million from public funding (other than ACE support) to their international activity. However, this £1.6 million came from a minority of NPOs with 81% (178 out of 221

who answered this question) allocated no public funding to international projects. Combined arts and

dance-based NPOs, on average, received the most funding from other public sources for international work.

On the whole, international activity generated a net financial contribution to the NPOs overall, thereby enhancing their economic sustainability and resilience. For example, on average, NPOs earned £80,000

from international projects out of total revenue of £139,500. This compared to a total cost of £130,400

associated with these projects.

“From an organisational point of view, international projects represent diversity in the company’s income streams and have improved the company’s financial sustainability…ACE provides 6% of our core funding…the rest of our income comes from projects including international.”

FutureEverything

9 Not all of the income from international activity reported by NPOs (£34million) is accounted for in the data provided by NPOs for the individual components of this income due to not all NPOs being able to provide this more granular information. 10 Note: questions regarding other forms of public subsidy and contributed income were only answered by NPOs who receive income from these sources.

69%

15%

6%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Contributed income

Other public subsidy

ACE subsidy

Earned income


© TBR Page 16

Across all NPOs that could provide the information (243), total revenues generated by international activities in 2014-15 were £34 million against £31 million in costs. Thus NPOs, on average, were able to

retain 9% of all the revenues generated from international activity, so contributing to their own financial

sustainability.

This does not represent the full picture, however. First, many NPOs are involved in major projects that

incur significant expenditure and may cover both their UK and international activities. So, while revenues may be categorised as associated with either UK-based or international activities, the costs are less easy

to attribute as they are spread across both. Second, international activity by NPOs often comprises part of a larger arts event, including festivals, which require additional funding to be levered in. So, for

example, 46% of NPOs surveyed (127 out of 276), contributed to the costs of large projects or co-

productions, which the NPOs state would not have taken place without their involvement. These NPOs contributed £5.9 million to international projects that, in total, incurred costs of £16.5 million. Thus, ACE

funding could be seen as contributing to the levering in of an additional £10.6 million.

Nonetheless, we are confident in reporting that, overall, international activity is financially beneficial to

NPOs and contribute towards the goal of achieving financial sustainability and resilience.

3.3 The countries involved

International activity is global, with NPOs working in all corners of the world to deliver projects.

Traditional markets of Europe and North America remain the most prevalent, both in terms of the number of NPOs working there and in the number of projects (Figure 6).

“Europe is straightforward, in particular Germany and the Netherlands. It’s easier partly because we’ve done it for longer; partly because it’s closer; we know the people; we know the concert halls and so it’s pretty successful.”

London Philharmonic Orchestra

As Figure 7 shows, the USA is the most popular destination for NPOs’ international activities (45% and

124 NPOs). This is followed by numerous European countries, along with Australia and Canada. This suggests the enduring strength of the English language, ties to the Commonwealth, and the advantage of

cultural and geographical proximity to continental Europe.


© TBR Page 17

Figure 6: Breakdown of all international projects by continent11

“Work in America, Australia and Ireland has been straightforward as there is a shared culture and language. Values are similar as are processes and systems.”

Royal Shakespeare Company

Figure 7: Top ten countries for NPO international activity


11 Asia is split into two regions; Asia (South, Central, East and South East) and Middle East/West Asia

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

USA

Fra

nce

Germ

any

Spain

Neth

erlands

Italy

Aust

ralia

Belg

ium

Canada

Sw

eden

Perc

enta

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f N

PO

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ork

ed h

ere


© TBR Page 18

When looking in more detail at individual artforms, we see little variation in the most popular countries to work with. For instance, the USA is the top destination for all artforms aside from dance and combined

arts NPOs, for whom France is the most common.

As we broaden the scope to look at the top ten countries, differences emerge, which are interesting. For

example, combined arts and non-artform specific organisations are the only two types where Brazil features in the top ten countries for NPOs to work with. Similarly, literature is the only artform for which

Mexico makes the top ten, and music NPOs are the only ones which count Japan as one of its top ten countries. Visual arts is where we see the most difference, being the only artform with two countries in

the top ten which do not feature amongst the top ten for any other NPOs – Poland and China.

More NPOs are now working with more countries than in past years, with 169 NPOs working in specific

countries for the first time in 2014-15. In absolute terms, the traditional markets are still the most popular for both those NPOs working internationally for the first time and seeking to enter new

territories. For example, 8% (22 out of 169) of NPOs working in USA were doing so for the first time.

Others had started work in Belgium (7% NPOs), Spain (7% NPOs) Australia (6% NPOs), Germany (6% NPOs) and France (5% NPOs).

However, analysis of where NPOs were working for the first time only tells us part of the story. Although based on fairly small numbers, by looking more specifically at individual countries we are able to identify

emerging markets. For example, 2014-15 was the first year where an NPO had worked with Qatar. Similarly, of the seven NPOs that worked with Iran and seven that worked with Hong Kong, four were

doing so for the first time (Table 6). In contrast, only 15% of all NPOs working with France in 2014-15

were new to those markets, as were 17% of those in Germany and 18% of those in the USA.

“China, Hong Kong, India and Mexico are key markets for us. A greater presence in those territories could help HSC enhance its sustainability and extend its geographical reach in order to identify and nurture partnerships. Given our dynamic operating environment, we are wary of assumptions about existing markets and are focused on developing new ones”

Hofesh Schecter Company

Table 6: Top emerging markets (based on the proportion of NPOs working with countries for the first time)

Country

NPOs working with the country in 2014-15

Number of these NPOs working with the country for the first time

1 Qatar 1 1

2 Hong Kong 7 4

3 Iran 7 4

4 Malaysia 2 1

5 Serbia 2 1

6 South Africa 16 7

7 China 28 12

8 Colombia 7 3

9 Indonesia 5 2

10 Belgium 48 19



© TBR Page 19

NPOs reported facing challenges when operating outside of traditional markets for the first time and in new territories. Their perceptions and experiences suggest that they find it easier, culturally and

logistically, to work in Europe rather than further afield.

“Work speeds can vary. Some countries communicate more slowly. For our project in Tunis, we had to wait longer than anticipated for final decisions. We needed to manage these intercultural differences.”

Wildworks

How variable is international activity?

© TBR Page 20

How variable is international activity? 4.

This section explores variations in the nature and extent of international activity across different artforms,

regions and size of NPOs as defined by permanent staff numbers. We have sought to explore those

areas where there appear to be notable distinctions between these different groups of NPOs, rather than report the results across the full range of metrics.

The results of the survey are presented in four sub-sections, based on artform, regional location, size of organisation, and maturity of international working.

4.1 Differences by artform

In this sub-section we explore how the extent and value of international activity undertaken by NPOs varies across artforms. Headline findings are that:

Theatre has the highest absolute number of NPOs working internationally (72, or, 59% of NPOs

surveyed).

Dance has the highest proportion of NPOs working internationally (29, or, 76% of NPOs).

Music has the highest average number of international projects by each NPO (16 per NPO).

4.1.1 Extent of international activity

It is clear that there is some variation in the proportions of NPOs working internationally. Dance (76% of

38 NPOs), literature (75% of 28 NPOs) and visual arts (72% of 78 NPOs) organisations were most active internationally, compared to combined arts (58% of 97 NPOs), theatre (59% of 122 NPOs) and music

(63% of 49 NPOs).

However, these dance, literature and visual arts organisations only represent a minority of all ACE’s NPOs

and they are, overall, relatively small in terms of the volume of work. As such, they account for 40% of the NPOs that work internationally, yet they only contributed to a quarter of all the international projects.

This suggests that although international working is common amongst organisations in these art forms,

they do not appear to work on large numbers of international projects. The biggest contributions come from music and combined arts organisations that, together, worked on 59% of the 2,200 international

projects delivered (Figure 8).

Figure 8: Number of international projects by artform


The average number of international projects that NPOs undertook in 2014-15 varied by artform. Dance

organisations had the lowest average number of international projects, with between five and six for

724

157

189

496 23

1,023

360

Combined arts

Dance

Literature

Music


Theatre

Visual arts


© TBR Page 21

each NPO. In fact, 80% of dance organisations worked on five or fewer international projects. This compared to music, theatre and combined arts NPOs, who, on average, undertook 16, 14 and 13 projects

respectively. For these artforms the average number of projects per NPO is influenced by a small

number of NPOs that were very active in international work – for example, by those that undertook over 100 projects.

4.1.2 Revenues

The average revenue from international activity in the financial year 2014-15, ranged from £17,000 for

NPOs that were not artform specific, to £243,500 for music NPOs, as shown in Figure 9, below. As with the number of projects, the average level of revenues was influenced by the small number of NPOs (8

NPOs) that generated over £1 million per annum from international activities. For all artforms other than

literature, the mode for total revenues was between £10,000 and £50,000. While international activity is relatively widespread, the extent of this, as measured by total revenues, varies by both artform and by

NPO. This would appear to reflect differences within the arts and cultural sector in England.

Figure 9: Average total revenues from international activity


It is also evident that literature NPOs are different to other NPOs in that a larger amount of their international work takes place in the UK. Alongside attending festivals, the most common international

activity for literature organisations is ‘hosting residencies for international artists in the UK’. Nearly 60% of literature NPOs undertake this, whilst only 20% promote artists outside the UK, and only a quarter

tour. By contrast, three quarters of theatre organisations promote artists outside the UK.

The earned income generated directly by NPOs also varies across artforms, as can be seen in Figure 10. Music projects appear to be the most valuable for NPOs. Whilst making up 17% of international projects

undertaken by NPOs, these account for over a third of all the earned income.

£108,000

£190,100

£84,100 £243,500

£17,000

£148,400

£108,000 Combined arts

Dance

Literature

Music


Theatre

Visual arts


© TBR Page 22

Figure 10: Average earned income from international activity


Comparing earned income to total revenues derived from international activity, reveals that music NPOs,

on average, generate the greatest proportion (92%, or £222,900) of their international revenues from earnings - indeed, generate the largest absolute amount (£243,500 per NPO) across the whole sample.

Conversely, visual arts NPOs, on average, earn only 22% of their international revenues, equivalent to less than £24,000 per NPO. These differences could be explained by the nature of projects – for example,

a ticketed music concert charging an admission fee is likely to earn more income than a visual arts

display in a free-to-enter gallery. Non-artform specific NPOs generate a slightly higher proportion (26%) of their international revenues from earned income, but this represents less than £4,500 per NPO in

absolute terms – suggesting they engage in a small amount of fee generating activity.

Figure 11: Total revenues compared with total expenditure associated with international activity


£48,300

£145,200

£16,100 £222,900

£4,400

£84,600

£23,900

Combined arts

Dance

Literature

Music


Theatre

Visual arts

£0

£2,000,000

£4,000,000

£6,000,000

£8,000,000

£10,000,000

£12,000,000

Com

bin

ed a

rts

Dance

Litera

ture

Musi

c

Not

art

form

speci

fic

Theatr

e

Vis

ual art

s

Total income Total expenditure


© TBR Page 23

4.2 Differences by location

This sub-section explores how the nature and extent of international activity varies across the different

areas of England. Headline findings are that:

NPOs in the South East (76%) are most likely to work internationally, followed by those in

London (69%) and the Midlands (69%). Those in the North (57%) and South West (58%) are least likely to be involved in international activity.

NPOs from London, on average, generated the greatest income from international activity at

£183,800, whereas those from the North only generated £48,100.

The average number of international projects that NPOs undertook in 2014-15 did not vary considerably

by area. Organisations in the South West were most active internationally, working on an average of 15 projects. However, this average reflects a small number of NPOs in the region that worked on 50 or more

projects including one NPO that had 100 or more international projects. Once this very active NPO was

omitted from the analysis, we see that the average number of projects in the South West is similar to every other region with between two and 10 international projects per NPO being the most common

range. NPOs in London, the Midlands (both 8 per NPO), South East (7) and North (6) had a similar number of international projects.

In terms of the total amount of international activity originating in different regions, London and the

South West lead the way with 825 and 468 projects respectively. They are followed by the North (377), the Midlands (268) and the South East (227), reflecting the differences across the regions in the number

of NPOs working internationally.

4.2.1 Revenues

We reviewed the total revenues generated from international activity as well as earned income per

region:

London-based NPOs were responsible for over half (53%, or £18 million out of a total of £34

million) of all revenues from international activity. The Midlands generated 15%, followed by the

South East generating 13%. The North generated some 8% of total revenues.

London’s NPOs appear to be more successful in generating earned income as they account for

61% of total earned income from international activity whilst only being home to 39% of the

NPOs who work internationally.

In contrast, NPOs in the North contribute 25% of NPOs who work internationally whilst only

generating 5% of the earned income from international projects.

4.3 Differences by size of NPO

In this sub-section we seek to investigate the extent to which international activity varies with the size of NPO12. Employment has been used as the metric to describe size on the basis that it is relatively easy to

measure and tends to be a consistent benchmark within each art form

Headline findings are:

Only 24 small NPOs (those with 10 or fewer staff) were involved in international activity. This

represented 9% of all NPOs involved in international activity. Just over half (57%, or 24 out of

42) of small NPOs undertook international activities.

12 Based on total contractual and permanent staff members. Size bands used were: 0, 1, 2-5, 6-10, 11-20, 21-50, 51-100, 101-200, 201-500, 500+.


© TBR Page 24

The largest organisations (those with more than 100 staff) provided the greatest number of

NPOs involved in international activity (85 out of 276 that are involved), or 31%. This represents three quarters (75%) of all the large organisations that responded to the survey. This does

suggest that international activity is more prevalent in larger organisations.

The largest NPOs provided over half (56%, or £18.9 million out of £34 million) of all the revenues generated by international activity. Unsurprisingly, small NPOs contributed a small proportion

(2%) of revenues.

The largest NPOs were even more prominent in terms of generating earned income, contributing

66% of the total or £12.2 million out of £18.5 million – of which theatre, music and dance were generating the most earned income from international activity.

From the research, we might infer that there is linkage between international activity and size, as measured by employment.

4.4 Differences by maturity of international business modes

In this sub-section we explore how the extent and value of international activity undertaken by NPOs vary across the different levels of international business model ‘maturity’ (ie looking at how long NPOs

have been working internationally). Headline findings are that:

Most NPOs are new to international working, with 186 NPOs out of 276 who work internationally

starting to do so since 1991. Of these, more than half have started since 2001.

NPOs with a more mature business model work on more projects: those who first worked

internationally between 1900 and 1939, have an average of 42 compared to 2 projects for NPOs

who started since 2011

NPOs with a less mature international business model undertook more new forms of activity in

2014-2015

The most established NPOs, in terms of working internationally, earn more from their

international work, although there are far fewer of them

4.4.1 Extent of international activity

In terms of the total number of projects, NPOs who began working internationally between 2001 and 2010 delivered the most during 2014-2015, contributing 24% of all projects (527 out of 2,222 projects -

Figure 12).

Figure 12: Proportion of all international projects in 2014-2015 by time period of when NPOs first worked internationally

2%

10%

2%

8%

18%

24%

2% Before 1900

1900 - 1939

1940 - 1960

1961 - 1980

1981 - 2000

2001 - 2010

2011 - 2015


© TBR Page 25


NPOs who have started working internationally more recently (since 2011) also have a greater tendency to be active in new forms of activity, with more than half (17 out of 32 NPOs) who first worked

internationally between 2011 and 2015 having undertaken new forms of activity in 2014-2015 (Figure

13).


© TBR Page 26

Figure 13: Percentage of NPOs undertaking new forms of international activity in 2014 -201513


4.4.2 Revenues

Looking at the distribution of total revenue from international activity it is evident that less mature NPOs contribute the greater absolute amount of income. However, in terms of income per NPO, it is the more

established NPOs who have higher average revenues (Table 7).

Table 7: Total revenue from international activity

When NPO first worked internationally

Before 1900

1900 - 1960

1961 - 1970

1971 - 1980

1981 - 1990

1991 - 2000

2001 - 2010

2011 - 2015

Number of NPOs 2 7 6 12 24 49 93 27

Total income £73,150 £6,814,045 £1,220,540 £719,670 £3,949,705 £5,466,860 £10,320,320 £979,225

Average income £36,575 £1,247,260 £203,425 £59,970 £164,570 £111,570 £110,970 £36,270


A similar pattern is seen when looking at earned income from international activity (Table 8).

13 * Only two NPOs fall into the category of starting international work between 1940 and 1960

0%

10%

20%

30%

40%

50%

60%

Before

1900

1900 -

1939

1940 -

1960*

1961 -

1970

1971 -

1980

1981 -

1990

1991 -

2000

2001 -

2010

2011 -

2015

% o

f N

PO

s



© TBR Page 27

Table 8: Earned income from international activity14


Before 1900

1900 - 1939

1940 - 1960

1961 - 1970

1971 - 1980

1981 - 1990

1991 - 2000

2001 - 2010

2011 - 2015

Number of NPOs 2 5 1 6 10 23 42 85 30

Total earned income £4,525 £5,597,450 £52,635 £475,585 £539,915 £1,334,575 £2,230,725 £4,443,450 £585,880

Average earned

income £2,265 £1,119,490 £52,635 £79,265 £53,990 £58,025 £53,110 £52,275 £19,530

Earned income as proportion of total income 6% 84% 39% 39% 75% 34% 41% 43% 60%


14 Note: the number of NPOs differs between table 8 and table 9 depending on how many were able to answer the survey questions.

Non-financial impacts of international activity

© TBR Page 28

Non-financial impacts of international activity 5.

In this section we seek to report on the motivators, benefits and sources of help that NPOs described

when asked about the factors that influence their involvement in international activity15.

5.1 Motivators

Generating additional income does not appear to be the main motivator for NPOs to engage in

international activity – with only 63% of NPOs considering this as a factor. Rather, as shown in Figure 14, the chance to experience and learn from other cultures, to place their work in a global context, and

to showcase their work were stated as motivating factors by the majority of NPOs. It is interesting

however, that whilst 80% of NPOs said the chance to showcase their work was in their top three, none considered it their single most important motivation.

“Exposure to international markets, clients, funders, and cultures helps improve the quality of our work…”

FutureEverything

Figure 14: Motivations for international activity (out of 276 NPOs)


15 NPOs surveyed were asked to select options from a range of potential motivating factors. NPOs were able to choose as many motivating factors as they considered relevant to them.

0

50

100

150

200

250

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the o

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ation t

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xperience

and learn

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our

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ork

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© TBR Page 29

“Going to other countries informs our work and helps us think differently…it broadens the impact of our work, leading to innovation and diversity… we offer other countries innovative quality work, and we are proud to be able to do so.”

Kneehigh

When we look at the most important drivers by artform, differences emerge. Music and dance NPOs

considered ‘placing their work in a global context’ to be the most important reason for working internationally. Theatre and non-artform specific organisations identified ‘experiencing and learning from

other cultures’ as the key driver for their international work. Combined arts, literature and visual arts NPOs were most influenced by the opportunity to ‘present new work’. This might be characterised as

being ‘demand driven’. Motivators that could be considered ‘commercial’, namely ‘generating additional income’ and ‘accessing larger markets’ did not feature amongst the most important motivating factors.

The same three motivating factors were foremost in our analysis of survey responses by region and/or

NPO size. This suggests that what NPOs consider important is influenced more by their artform than by their location or size.

5.2 Benefits

Within the survey, NPOs were invited to identify a wide range of benefits that they may have derived

from their international activities. Nearly all NPOs recognised improvements to their reputation. This

was followed by artistic and professional development, and inclusion in the international arts landscape. The full results are presented in Figure 15.

Figure 15: Benefits from international activity (out of276 NPOs)


0

50

100

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200

250

Impro

ved r

eputa

tion

Art

istic

and p

rofe

ssio

nal develo

pm

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Bein

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art

of

the inte

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Reach

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develo

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nd learn

ing fro

min

tern

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anis

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ple

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Incr

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undert

ake

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such

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anagers

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within

UK)

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Num

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NPO

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© TBR Page 30

Again, financially oriented benefits, such as new sources of income generation and additional public funding featured relatively low on the list.

“Success for British Underground includes: high profile, busy stages and networking events; measurable industry outcomes for partners, artists and UK delegates; strong long-term international partnerships; new corporate and cultural international partnerships; and international media and press.”

British Underground

Examining the benefits by artform reveals a mix of responses. Four different benefits are ranked as the

most important by NPOs:

Combined arts and literature organisations viewed an improved reputation as a key benefit.

Artistic and professional development was considered the main benefit by music and theatre

NPOs.

Being part of the international arts landscape was key for dance organisations.

The opportunity for new collaborations was most important to the visual arts.

Two further benefits featured as the second most important for three artforms; literature and music NPOs valued reaching new audiences and audience development, whilst combined arts NPOs valued the

opportunity for knowledge exchange and learning.

“What we regard as indicators of success include: appearing in the world’s most prestigious centres; having a presence in the world’s major cities - Berlin, Paris and so on; working with great artists; working on interesting projects, which might be developed specifically for us.”


5.3 Sources of assistance

NPOs were asked about the characteristics of their own organisations and of any external agencies that

had helped them to develop international working.

Their own reputations were judged by nine out of ten NPOs to be the greatest asset. Existing

relationships with international arts organisations, experienced staff, directors or board members, were

also crucial, as Figure 16 sets out.

“There are two European networks that are useful to us: the European Dancehouse Network and Aerowaves…we also have our own Creative Europe-funded project, Pivot Dance, with three partners…”

Contemporary Dance Trust (The Place)


© TBR Page 31

Figure 16: Success factors in undertaking international activity (out of 276 NPOs)


“We have corporate partners who include UKTI; funding partners, for example, PRS (Performing Rights Society), with whom we work very closely; we work co-operatively with all the UK’s national agencies …. We have formal (contractual) partnerships with a series of events including Folk Alliance International. Americana Music Association, SXSW and WOMEX.”

British Underground

Clearly, when taken as a whole, NPOs feel that they primarily help themselves and external assistance is deemed relatively less effective. This highlights the importance of self-reliance and downplays the

benefits of the help that is available.

An NPO’s reputation is considered to be the most important success factor by organisations from all

artforms, aside from combined arts NPOs. They indicated that existing relationships with international organisations were key to successfully working internationally. These positions were reversed in terms of

NPOs’ reflections on their second most important success factor. Literature organisations reported a

variety of second most important success factors, including: ACE financial support, experienced staff and directors (also important to visual arts NPOs), and international networks.

Overall, we can see linkages between the three areas set out above - motivators, benefits and help. Thus, the principal drivers for NPOs involving themselves in international activity relate to improving their

output; the benefits of this activity appear to be enhanced reputation, development and being part of the

international landscape; and the main sources of help are reputation and organisational capability. This appears to represent something of a virtuous circle.

0

50

100

150

200

250

300N

PO

’s r

eputa

tion

Exis

ting r

ela

tionsh

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anis

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Experience

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Inte

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ork

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International activity barriers and support needed

© TBR Page 32

International activity barriers and support needed 6.

This section reports on the barriers faced by NPOs, and the types of support that they perceive as

helping to address them and so improve the quality of their international activities. ).

6.1 Barriers

The two most significant barriers to NPOs’ pursuit of international work were insufficient financial

resources and lack of capacity in terms of time and staff (Figure 17).

Figure 17: Barriers to international activity (out of 276 NPOs)


The order of ranking was the same across the artforms.

“Exchange rates can act as a barrier…it’s not always straightforward working in Europe…a particular problem we face is currency fluctuation.”


Individual NPOS also cited examples of ‘on the ground’ practical difficulties.

“Very few theatres are the same shape…this causes difficulties when you are trying to fit a certain set into a constrained space…some international venues have not been right for certain productions so the overall experience has been disappointing for us….”

Royal Shakespeare Company

0

50

100

150

200

250

Lack

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icie

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financi

al

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and

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pre

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us

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rnational w

ork

Num

ber

of

NPO

s


© TBR Page 33

“There was one international project, which was part way between a project, a partnership, and a network. It didn't work well - there were too many partners; it was insufficiently focused on its potential outputs; it was more driven by the politics of working together, and neglected the core strategies of our individual organisations.”

Contemporary Dance Trust (The Place)

As we saw from Section 5, NPOs were prompted to undertake international activity for three main reasons:

To place their work in a global context.

For the organisation to experience and learn from different cultures.

To showcase their work.

These relate to the quality of their work and a desire to extend, if not enhance, their practice.

6.2 Support requested

We asked NPOs what might encourage them to undertake more international work. The results across all

artforms are set out in Figure 18. The top four responses can be characterised into two groups:

Information about opportunities and markets.

Guidance about undertaking international activity.

From the interviews and survey work we can state that international partners may be more willing to

engage if English NPOs were seen to be more financially self-reliant, and less demanding of further

support. Thus, NPOs might be encouraged to focus additional attention on overseas markets if some of the financial risks could be removed or capped.

“Projects tend to be more successful and straightforward when the partners share similar qualities, and a common aesthetic - being interested in the same kind of art. You tend to get through projects when that’s the case - all obstacles are surmountable.”

Contemporary Dance Trust (The Place).


© TBR Page 34

Figure 18: What kind of support might help you to undertake more international activity?


When we looked at the nature of support that was being contemplated across the artforms, there was a

degree of variation. The impression gained was that the NPOs consider funding for innovative or experimental work to constitute an important area of support, with NPOs from all artforms (aside from

dance) ranking this as most important to them. Music NPOs also view more information about opportunities as equally important. Dance NPOs identified help with access to new international markets

as the key area, with funding the next most important. For other artforms, information about

opportunities, access to markets and introductions to international contacts were viewed as vital. Thus, whilst more funding for new work would be valued, high level support for international activity would

include identifying the right contacts, and information on opportunities. Practical support would also be very welcome

However, it is evident that once opportunities and contacts have been found, there is work for NPOs in the planning and preparation of international projects. Although these are time consuming and require

funding, they are essential to delivering successful work overseas. Thus, support or guidance in these

areas would be welcome.

“More advanced planning is needed…this involves communicating effectively and regularly with international partners, visiting them on the ground, planning ahead, allocating the right amount of resources in advance, ensuring that major details are not missed and are addressed before a production opens in other countries/venues…”

Manchester International Festival

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50

100

150

200

250

Fundin

g for

innovative o

rexperim

enta

l w

ork

Info

rmation a

bout

opport

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Help

makin

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ork

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with v

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with legal is

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and c

ontr

act

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Support

for

mark

et

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arc

h

Num

ber

of

NPO

s

Conclusions

© TBR Page 35

Conclusions 7.

Having reviewed the research method and results, we draw the following conclusions regarding NPOs

and international work.

7.1 ACE and support for international activity

ACE funding for NPOs is intended to help cover core costs, whether or not organisations operate

internationally. The primary focus of this funding is to benefit artists and audiences in England.

It is clear that there are a number of domestic advantages to be gained for both artists and organisations from NPOs working internationally, including cultural exchange, development of

artistic practice and the more general raising of the profile of English artists and culture abroad.

Nearly two thirds (65%) of all NPOs who responded (276/426) to the survey had undertaken

international activity during the past three years. This confirms that the majority of NPOs are

actively engaged in international activity.

The most prevalent international activities undertaken by NPOs were:

o Promoting artists outside the UK. o Attending festivals and other events.

o Co-productions and co-commissions.

As such, international work covers a broad range of inbound and outbound activities.

7.2 Financial returns from international work

NPOs, overall, generated 7% of their gross revenues from international work. There was wide

variation in the extent of its financial contribution. Half (51%) of those NPOs involved in international work generated between 1% and 20% of their revenues from this source, and the

remaining half (49%) generated over 20% from international work.

Over two thirds (69%) of all revenues associated with international activity were earned from the

NPOs’ box office receipts, fees, merchandising etc., rather than from grants or subsidies. This

highlights the importance of the commercial element of international activity in terms of

generating additional income.

Those NPOs that were able to provide the data (n=243) indicated that they generated a surplus

of £3 million on revenues of £34 million, equivalent to a return of 9%. We might conclude from

this that international work has the potential to offer significant financial benefits to NPOs. Key to this is the ability to generate earned income from box office receipts etc. However, it would

seem that artform has a significant role to play in terms of the opportunities to generate

earnings. Likewise, commercial acumen and a motivation to generate additional revenues will also play a part in how much revenue an NPO might generate from international activity.

NPOs were instrumental in supporting major international projects and their involvement enabled

partners to generate further backing. Respondents indicated that they contributed £5.9 million to such projects, which would not have gone ahead without them, and which, in total, incurred

costs of £16.5 million. Thus, ACE funding could be seen as levering in a further £10.6 million to those NPOs engaged in international activities.

7.3 Nature of international work

The research found that the English-speaking world and continental Europe were NPOs’ most

established markets, and were where NPOs tended to initiate their international activity. New

markets tended to be further afield and culturally more diverse, such as South East Asia and the

Middle East.

Conclusions

© TBR Page 36

In terms of artform, NPOs in music and combined arts were the most likely to work

internationally.

7.4 Differences across artform

NPOs offering music and dance generated the greatest overall revenues from international work,

the largest proportion of which derived from earned income:

Table 9: Financial returns from international work

Measure Music Dance

Average total revenues per NPO £243,500 £190,100

Average earned income per NPO £222,900 £145,200

Earned income as a percentage of total revenues 92% 76%

Surplus (retained revenues) 56% 4%


This suggests that there are significant financial opportunities to be realised by music and dance

NPOs. These artforms certainly appear to have generated major streams of earned income, though margins do vary considerably. For music, international activity would seem to be

particularly lucrative.

7.5 Other motivations for international work

When asked about their motivations in undertaking international work, NPOs identified three key

factors:

o Experience and learning from others.

o Placing their work in a global context.

o Showcasing their work.

The opportunity to generate additional income was ranked sixth out of eight options. Thus,

artistic and cultural drivers were deemed more important than commercial considerations.

Despite this relatively low ranking, the results show that 174 out of 276 respondents, or 63%, selected income generation as a motivator.

We may also conclude that raising revenue, whatever the source and however done, may be

deemed an ‘enabling factor’ that allows NPOs to achieve their principal aims of working in the arts. Generating additional revenue may not act as a motivator, per se, but is a necessary

precondition for NPOs to continue operating and to prosper artistically.

The key benefits to be gained from international work were identified by the NPOs as being:

o Improved reputation, o Artistic and professional development, and

o Being part of the international arts scene.

These would appear consistent with the motivations to undertake international activity expressed

by NPOs, so are mutually reinforcing.

The key sources of assistance that NPOs drew upon, were:

o Their own reputation,

o Existing relationships with international arts organisations, and o Having experienced staff, directors and board members to refer to.

Conclusions

© TBR Page 37

External support was ranked relatively low, with NPOs appearing to draw on internal capabilities,

rather than relying on others.

All respondents indicated that artistic and cultural matters were key to how NPOs made their

case for undertaking international activity. Thus, we might conclude that the provision of further

resources to support NPOs’ international work might be most welcome, if it were focused on enhancing output and capability.

7.6 Support to encourage additional international work

When asked about the type of support that might help NPOs undertake additional international

activity, their most favoured responses were:

o Funding for innovative or experimental work,

o Information on opportunities, o Helping make international contacts, and

o Helping access new international markets.

These were selected in preference to more specific practical assistance, such as help with visas,

and other travel or legal issues. Clearly, the most important element of assistance was perceived

as being related to the artistic and cultural domain, though the others are specific to international

activity.

The indications from the research were that international partners would be more willing to

engage if NPOs were more financially self-sufficient. Thus, to increase the likelihood of NPOs

finding willing partners, help could be targeted at assisting NPOs overcome the financial risks associated with international work, (e.g. that revenues may not be as great as hoped or that

costs turn out to be greater than expected).

Glossary

© TBR Page 38

Glossary 8.

A range of terms are used in the report, so definitions are provided in the table below.

Terms Definition or explanation

ACE subsidy Payment of a core grant, strategic or project funds from ACE to one of its NPOs.

Contributed income Income received that is treated as a contribution or sponsorship. This could

cover contributions made by friends of an NPO, fund raising efforts or sponsorship from a business or other organisation.

Earned income Revenues generated from commercial activities and will typically include box

office receipts, royalties, and fees.

International activity Any activity that takes place outside the UK or involves input from persons or activity (e.g., productions from outside the UK.) It may be characterised

as being export oriented, that is, any income comes from overseas or import oriented, whereby payments are made to overseas performers or for

materials originating from outside the UK. It should be noted that NPOs self-selected the projects that were identified as being ‘international’. Thus,

there is significant variation in the type and scale of the projects marked as

being international.

International income Revenues generated from international activity. This may include: earned

income, an allocation of ACE funding, contributed income or public subsidy.

NPO For 2015-18, ACE is investing just under £1 billion into 663 arts organisations (NPOs) that form that National Portfolio. The research focused

exclusively on NPOs.

International project The survey asked NPOs how many international projects they undertook. The term ‘project’ was identified during scoping interviews where NPOs

feedback that this was the best way to obtain a consistent measure across artforms of the quantum work they undertake. As per Table 5 international

projects include any of the following undertaken with or for international

partners, organisations or venues: Co-productions/ co-commissioning; Independently producing or performing; Taking artists outside of the UK;

Arranging for UK artists to have residence overseas; Tours; Staff attending festivals; Hosting residences for international artists in the UK; Brokerage

Other Public subsidy Any contribution made by a public organisation. This will usually take the

form of a payment made to cover activities that are deemed to be a public good. For this analysis ACE subsidy is not included.

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