Public and Private Funding

What is public funding? 

Public funds is money devoted from the government for creative, voluntary, or community organizations that does not have enough money in order to proceed their project. The government itself received this money from taxes we pay every month including . For example, it is money received from everyone by one or another way. The main public body is Arts Council but it may be a lottery that holds an event in order to collect money for a new theatre performance.

What is private funding? 

Private funding is money received from rich people or companies that has no connection or support from the government. It might be a particular person who`s got a few companies and in return he wants his companies to be advertised on the leaflets or be mentioned at the beginning or in the end of performance.

Three companies who receive public funding

1. Almeida Theatre funded by Arts Council England
2. The National Theatre funded by Arts Council England
3. Little Angel Theatre funded by Arts Council England 

Three Companies/productions that receive private funding

1. Globe Theatre funded by Deutsche Bank 
2. Waterloo East Theatre funded by Donors
3. Royal Shakespeare Company funded by the Anson Charitable Trust 

Pros and Cons of public and private funding 

Both types of funding provides money for organizations to be able to afford what they want to do. 

Pros of public funding is :

They offer more money. 

In case the project is unsuccessful they are not going to ask pay back the money. That means if it fails it fails and the money is wasted. 

The money is much easier to get you just need to apply online and fill up the forms. 

They offer money from one performance to 5 years running shows.

Easy to find information about funds. Normally, they publish the information on the internet. 

Cons of public funding is:

Ask for a clear report where the money is used. They want to see all accounts where the money is gone. 

Usually it takes long hours of filling up the application forms and describing the project you want to get the money for. 

Sometimes they may easy reject the idea that is not stabilized properly and seems to be beneficial for community uses. 

In case of political changes the availability of public funding may change a lot. 

Pros of private funding is:

Don`t have so many papers to fill up. 

Mostly private funders want to support the bigger projects where they see the possibility to advertise themselves.

Sometimes they might support by providing particular assistance. For example, if Nutella company do not want to offer money they might offer  free snack instead to sell in a theatre. 

There are lots of private funders whereas public funders only a few so they receive less applications that means there is a higher chance to receive a support. 

Cons of public funding is: 

Offer smaller amounts of money comparing to amounts the government may offer. 

Might have a special requirements and needs. For example, a private funder might offer £15,000 but in return he wants his son to be in a show. 

Try to avoid private sponsors who`s got bad reputation such as Amazon, Starbucks, Coca-Cola. Let`s say Coca-Cola funds the performance and in return they want that the only drink to be sold in a venue is Coca-Cola. This may make the visitors not happy as some of them might want Fanta or Sprite. 

They keep the right to reject the applications without the actual explanation.