Why you need to stop talking about government grant money

I’m going to start this with a disclaimer. I believe that governments (of all levels) have a responsibility to support the arts and culture sector. I know that there are people and organisations that will continue to advocate for more funding—and I fully support and praise them in their endeavours—but it’s also worth saying that governments should also be funding sport, and tourism, and roads, and hospitals, and aged care facilities, and pensions, and education, and even as much as I hate to say it—defence. It is through this cocktail of services and sectors that our society and communities are built. Do the arts have a role to play in this cocktail? Absolutely, yes, but that is not the focus of this article.

Also worth mentioning, I am not going to enter into the discussion as to what is an appropriate level of funding because, quite frankly, economic theory is far from my area of expertise and honestly to me such academic or theoretical discussions are entirely redundant and wasted energies for the day-to-day functions of a professional in the arts, culture and entertainment sector. Within a well-functioning, professional sector it is the role of our industry peak bodies and advocates to continue to lobby for additional funding (amongst other issues), and if they are fulfilling their role properly this should be left to them (there is a worthy discussion around questioning whether the peak industry bodies are adequately meeting their obligations, but that is for another article). What I can offer in this articles is a solid argument and rationale as to why we need to change our focus away from expecting our governments to simply fund every art project and organisation, to a more business-savvy approach with multiple streams of income that don’t rely on governments to sustain your professional practices.

Like it or not, each artist, arts organisation, project, play, interpretive dance piece, painting, or installation is a business as soon as there is a desire or need to use this as a means of income (for profit or not-for-profit). There is a pretty dangerous thought that art and business shouldn’t mix. Some will say that business interferes in the creative process while others will prophesise about selling out (whatever that means), but the reality is that art requires money and that money has to be found from somewhere. Too often you hear those who talk about selling out or not wanting to engage with marketing or business, turn around and say they aren’t being paid fairly, which is a huge contradiction of thought (I would say, ‘in my opinion’, but I won’t because it’s just fact).

Simply put: art without business is a hobby. For anyone that is confused or outraged about this one, the ATO are pretty clear about the difference (click here for the clarification). There is nothing wrong with having a hobby. In fact, there are a whole host of health benefits and reasons to have a hobby—I have just taken up knitting again, and I am having a great time making scarves and beanies which has been great for my mental health as I negotiate 2020.

So, the proposition of this article is simple: if we want to talk about an arts industry with professional artists being paid a fair wage in good working conditions, then, as professionals, we need to treat our practice like a proper business with diverse, agile, and sustainable income streams just as any other business does.

This discussion about the importance of business in the arts is even more important when we consider the horrific impacts that COVID-19 has had on the world. COVID-19 has changed the world we know, and as a result the way that we do business, and the way we consume arts and culture. Let’s start with the obvious: for most in the arts, culture, and entertainment sector this has meant that work as we know it has either come to a complete stop, has drastically reduced from what it previously was, or is being delivered in a totally different manner to what we originally intended. Combined with this, global economies have tanked (meaning there is less money being circulated around, particularly for those who aren’t millionaires, billionaires, or catrillionbagillionaires) rendering audiences and consumers with less money to spend on discretionary items like art and entertainment. If we previously thought there wasn’t enough money for the arts—either from governments or audiences—it is only going to tighten what income is available as we continue to navigate a global recession and a potential depression.

Governments have spent big to fight COVID-19 (as is the right thing to do in a global pandemic), plunging most into debts that will take generations to pay off so even the most arts-loving governments of the future will have to claw this back across all budgets. We in the arts sector are always going to be wanting more, but at some stage we are going to have to be honest and realise that there just isn’t any more. We have to move past the theoretical arguments and focus on what we can do to get a share of the dollars that do exist and what we can do to contribute to building back the economy.

The stark reality is that the beautiful large $111bn arts sector that we built through our blood, sweat, and many tears has gone and it’s not likely to come back as we knew it for a long time—no matter how many parliamentary enquiries or petitions there are. But we should also remember that the sector has previously built itself to be worth $111bn; we have done it before, and we can do it again!

How do we do it? Well, now is the time to suit up and come out fighting. Now is the time to equip ourselves with business processes that are right for us and our business. Now is the time to develop a suite of income streams that will not only ensure our future as professionals in the sector but build resilience protecting us from the challenges that we will undoubtedly continue to face in the future.

The business development advice that I would give to anyone working on their recovery is actually no different to the advice that I would have given prior to COVID-19, and will continue to give in the future. As a business, you need to ensure you have diverse, agile (flexible) and sustainable income streams that support you and your practice while consecutively and continually looking for new opportunities to leverage.

Having diverse, agile, and sustainable income streams provides a level of security to your practice as we tackle an ever-uncertain world. These income streams mean that your business and practice can better respond to challenges or changes as they come about. Too many times have we seen in our sector examples of organisations that have closed after losing a government-funding source—whether it be from unsuccessful applications or changes in funding priorities. The lessons here can be applied to any practitioner or organisation that relies on any one income stream too much—whether it be a government grant, large sponsors or donors, regular gigs, residencies, sales of work, etc. We should also be cautious of any streams of income that are reliant on a single source ie. all one level of government, all audience driven, all sales based, all philanthropic, etc.

The trick to a healthy, prosperous, and secure career in the arts is going to be through creating your own cocktail of multi-tiered income that is both nourishing and sustainable. Unfortunately, there isn’t a recipe for the revenue cocktail that will suit all. This is going to come down to a variety of elements of what you are able to capitalise from to make a living. George and Bill are in the process of developing a series of free resources that we will make available on our website to assist you in navigating through how to build diverse, agile, and sustainable income streams. Also, until Sunday 13 September, I am offering free 30-minute consultations, completely obligation free to discuss strategies or steps you could take on the road to recovery.

This is not an article that was intended to spark a debate into how the arts and culture are funded in Australia, more so it has been written with the intention of highlighting the potential danger we face as a sector if we continue to put all of our energies into fighting for something that just might not be possible. As I said in the opening of this article, the energy spent by artists and arts organisations focussing primarily on government funding (advocating, besmirching, whinging) is in most cases futile. This is particularly true when there are for most artists and organisations a whole host of income streams available if we apply a level of creativity and strategy to our practices as a business first and foremost.