There is an increasing amount of non repayable funding available through a variety of channels including grants, philanthropy and high net worth individual donations. The amounts available and the requirements to obtain the funding will depend on the people or entities concerned but as finance channels, these are becoming more popular particularly where non monetary returns can be provided, such as entrance to an exclusive performance. The ability to obtain the money will be based on relationships and the ability to reach a wide audience with a convincing investment argument.
Below we consider obtaining grants:
|Nature:||Grants are non-repayable funds given by one party (the grantor), usually a government department, company, charity, foundation or trust, to another often a non-profit entity, educational institution, business or an individual.|
|Types:||Grants can be made for specific projects or causes, charitable purposes, research or to promote some area of industry and therefore support new or expanding businesses.|
|Length:||Grants are non-repayable but the criteria may require the grantee to provide information on the use of the funds and success of the project for a number of years. Grants can be made in single payments or in stage payments over a defined time period.|
|Cost:||The grant does not attract any interest or charges but there may be a time cost in compliance and reporting to comply with the grantee’s ongoing monitoring. Sometimes grant makers require grant seekers to have some form of tax-exempt status, be a registered non-profit organisation or a local government. However, in principle grants are not themselves subject to tax.|
|Process:||In order to receive a grant, some form of proposal or an application is usually required setting out the purpose of the grant and further information on how the grant ties into the grantor’s aim and objectives and how your application meets the grantor’s criteria. Budgets will also be required to demonstrate how the funding will be spent and in some cases to demonstrate that the funds do not cover usual day to day overheads or that no profit is being made.|
Grants can be provided for general business purposes by UK Government and European Union or for specific industries and bodies such as The Arts Councils, The Music Export Growth Scheme via UK Trade & Investment and the BPI and PRS offer grants to the Music sector. Other useful websites include: