BUSINESS & ARTS
REPORT TO THE PARLIAMENTARY
PORTFOLIO COMMITTEE
ON
ARTS AND CULTURE
In
1996, the Department of Arts and Culture (then Arts, Culture, Science and
Technology) considered that it was opportune to set up an agency to encourage
corporate sector support for the arts.
The Department understood that the needs of the arts sector would grow,
and that new sources of funding needed to be explored and opened up.
At
the end of 1996, Business & Arts South Africa was established as a Section
21 company with (then Executive Deputy) President Mbeki as its patron, and
operations commenced in April/May 1997.
BASA is registered as a public benefit organization, and is exempt from
Income Tax. It has an active Board,
reflecting the perspective of both business and the arts sectors: all Board
members serve on a voluntary basis.
There are 3 Board meetings annually.
Currently
the Board comprises:
Ms. Mary Slack (Chairman)
Dr. Ivan May (Deputy Chairman)
Mr. Richard Cock
Mr. Kwanele Gumbi
Mr. Sikkie Kajee
Ms. Pulane Kingston
Ms.
Winnie Kunene
Mr.
Mandla Langa
Mr. Charles Mabaso
Mr. Kenneth Marcus
Ms. Sizakele Marutlulle
Mr. Monna Mokoena
Ms. Sureshni Moodliar
Ms. Gabriela Palacios-Flusk
Mr. Richard Steyn
Mr. Sydney Selepe/Mr. France Sesedinyane represents
DAC at Board meetings
BASA’s
mission, as contained in its Memorandum of Association, is to promote and
encourage mutually beneficial and sustainable business-arts partnerships that
will, over the long term, benefit the broader community.
2.
Funding of BASA
BASA
is grateful to the Department of Arts and Culture for its consistent support
for BASA, and to our corporate members.
BASA’s
financial year runs from 1 April to 31 March, and has since inception received
an unqualified audit.
There
are two sources of funding for BASA.
a.
Government allocation
BASA
is funded through an annual grant from DAC, paid in three tranches during the
year.
The
grant is applied towards the BASA Supporting Grant Scheme and BASA Special
Projects (89.75% of the 2005/6 grant).
Historically,
to allow for any hiatus between financial year-end and payment of subsequent
year’s grant, BASA has established a small reserve, drawing from membership
fees: this now stands at R439 848,00.
DAC
allocation for year ended 31.3.2006 R4
349 000,00
DAC
allocation for year ended 31.3.2007 R4
610 000,00
(6% increment year on year)
BASA
also holds monies in trust for the Department of Arts and Culture: this is held
in a ringfenced call account, and is applied specifically to two long-term
Craft projects run through DAC viz. Crafting Cultural Understanding and
Beautiful Things Soweto.
Funds
held on behalf of DAC as at 31.3.2006 R2
302 020,00.
b.
Membership in BASA
Membership
in BASA is open to all companies operating in
R13
500,00 per annum, depending upon their number of
employees. In return for this, member
companies have access to information and advice on opportunities for
partnership with the arts and cultural sector, and receive invitations and
access to arts and cultural events.
Membership in BASA may also fall within their Corporate Social
Investment remit. The membership year
aligns with BASA’s financial year.
Membership
fluctuates annually, and is affected by changes in a company’s focus area,
changes in executive and management of a company, mergers and closures. Membership has grown from 49 in 1998 to 108
in 2006, growth of 120% over 9 years.
Honorary
membership is extended to various foreign government cultural agencies, in
recognition of the contribution they have made over many years to developing
and sustaining arts and culture within
Membership
received as at 31.3.2006 R 553 062,00
Membership
received as at 30.9.06 for
year ended
31.3.2007 (against billings
of R638 750,00 viz. R81 700,00 outstanding) R 557 050,00
(15% growth year on year)
Membership
income is applied towards BASA’s staff and operational costs.
3. Bank Accounts
Current,
call and 32-day notice accounts are held at Standard Bank, Sandton: BASA has
banked with them since inception.
Signatories to the accounts are any two of the following, signing jointly:
Ms. Mary Slack, Dr. Ivan May, Ms.
Nicola Danby
These
Board members have volunteered to remain as signatories, given their easy
availability to the BASA offices.
3.
Auditors
BASA’s
auditors are Grant Thornton, who conduct a 6-month
interim audit and year-end audit annually.
4.
Staff
As
at October 2006
Permanent
full time staff:
Nicola
Danby Chief Executive
Officer
Tsholo
Tshepe Project Administrator
Beverley
Kisten PA/Administrative Assistant
Maureen
Benya Receptionist/office assistant (in
training)
Part-time
staff:
Cathy
Rosenbaum Secretarial services 3
days per week
Independent
Contractors:
Nicolette
du Plessis Regional representative
in
Michael
Barry Regional representative in
Pending Regional representative
in
In
2006, 21% of the DAC grant or 18,8% of BASA’s total
income was applied to staff costs.
In
addition, a donation of R150 000,00 from Barloworld funds the monthly fee and
costs for the part-time position of Co-ordinator of the Barloworld Artworks
Mentoring programme, run in association with BASA.
5.
Activities of BASA
a.
BASA Supporting Grant Scheme
In
order to address its mission and mandate, the primary vehicle for business-arts
partnerships was identified as sponsorship of the arts ie. the payment
of money or the giving of in-kind support by a business to an arts organisation
for the purpose of promoting or enhancing that business’s brand, profile,
products or services within its target market. Sponsorship forms part of a business’s
general operational expenditure, falling within promotional, communications or
marketing budgets, and may include elements of corporate or social
responsibility.
The
challenge therefore is to demonstrate to business that partnership with the
arts and cultural activity is an effective communications tool for the
business, and brings real benefit not only to the arts organization concerned
but to the broader community. At the
same time, BASA regularly hosts workshops and seminars for arts organizations
to build better business skills and understand how to target potential sponsors
and/or donors.
Understanding
that business will expect some commercial and/or CSI benefits back from its
sponsorship, and that the arts require subsidy and funding from a variety of
sources, the BASA Supporting Grant Scheme (originally referred to as the
Matching Grant Scheme) was introduced to bring business and the arts together
by encouraging and incentivising business-arts partnerships. BASA
Supporting Grants are intended to enable an arts organization seeking
sponsorship to offer the potential sponsor a range of additional benefits
aligned to the sponsor’s desired objectives: this may range from linked
educational/outreach programmes, in-house performances, guest appearances,
hospitality opportunities, innovative branding or promotional activities,
marketing to new audiences. Such added
value is not intended to prejudice the artistic integrity of any production or
event, nor should benefits be proposed unless they can be delivered.
The
grants are not available to cap existing budgets or make up shortfalls: they
are specifically to create a ‘hook’ for a potential sponsor, giving the arts
organization some leeway to offer value to such a sponsor and thus secure the
sponsorship. Arts organisations seeking
funding are thus able to shift from a ‘begging bowl’ mentality, understanding
that they have something of value to offer a business sponsor. or The possibility of a grant should be integrated into any
approach or negotiations with a potential sponsor from the outset.
Process: Both the sponsoring
business and the recipient arts organization complete the forms: the
application forms require that the sponsor and the recipient communicate openly
about the partnership and establish the operating parameters from the outset
ie. what the organization is willing/able to provide
and what the sponsor anticipates.
Applications go to the Project Administrator who inputs all data,and verifies details of sponsor and recipient: if all is in
order, in consultation with the CEO, these are tabled at the Executive
Committee or Board meeting (Exco meetings are held every 6-8 weeks). Applications must be submitted at least 12
weeks prior to start date (by this we mean the date any promotion or publicity
starts).
Grants
of up to R50 000,00 may be approved by the Exco:
grants over
R50
000,00, if recommended by Exco, are submitted to the
full Board for ratification.
All
grants are paid to the arts organization, which is required to report fully on
all aspects of the event. On
signature of the application form, the arts organization gives BASA permission
to conduct an audit of the project: 5 ‘dipstick’ audits, randomly selected, are
conducted annually through Grant Thornton.
Criteria: The fundamental criterion is that the arts
organization must have a sponsor from the corporate sector, or be negotiating
with a sponsor. If this is not the
case, BASA assists arts organizations in seeking a sponsor.
The rationale for the relationship between arts
organization and sponsor is evaluated, as is the benefit to the direct community, and to the arts sector broadly.
BASA continues to support established and long-term
sponsors, on the basis of original and innovative benefits flowing from their
sponsorship, but pays particular attention to new, small business sponsors
operating at a local level, and encourages arts practitioners to look locally:
similarly, consideration is given to projects operating in underserved areas
that bring benefit to the local community.
Who benefits:
BASA
has made 564 grants in the period May 1997 to
HIV/AIDS 15
grants 2,7%
Marginalised groups 42
grants 7.4%
Underserved communities 164 grants 29%
Women 24
grants 4,3%
Youth 186
grants 33%
Strategic (business driven) 133 grants 23,6%
A total of R1 935 000,00
was committed to Supporting Grants for the year ended
|
Description |
Value |
Amount |
Financial Year End 2006
|
|
|
|
Total
of grants |
63 |
|
|
Reported
back |
41 |
|
|
Not
reported back |
22 |
|
|
|
|
|
Grants by business sector %
|
|
|
|
Advertising
Agency |
0.50% |
10 000.00 |
|
Chamber
of Commerce |
0.50% |
500 000.00 |
|
Educational
Institution / University |
1.00% |
40 000.00 |
|
Financial |
13.43% |
8
157 100.00 |
|
Food
& Beverage |
8.96% |
1
598 000.00 |
|
Foreign
Embassy |
5.47% |
1
980 000.00 |
|
Foundations/Trusts |
5.47% |
2
118 670.00 |
|
Funding
Agency |
4.48% |
3
004 800.00 |
|
Hotel
& Leisure |
10.45% |
479 500.00 |
|
Industrial |
2.49% |
136 000.00 |
|
IT/Computer
services |
1.49% |
30 000.00 |
|
Legal |
1.49% |
121 220.00 |
|
|
2.99% |
357 000.00 |
|
Manufacturing |
4.48% |
1
532 000.00 |
|
Media
& Entertainment |
10.45% |
4
320 246.00 |
|
Mining |
1.00% |
310 000.00 |
|
National
Government |
1.00% |
630 000.00 |
|
Petroleum |
1.99% |
675 000.00 |
|
Provincial
Government |
2.49% |
498 600.00 |
|
Real
Estate |
0.50% |
20 000.00 |
|
Recruitment
Agency |
1.00% |
21 500.00 |
|
Retail |
7.96% |
739 757.00 |
|
Telecomunications |
3.48% |
842 436.00 |
|
Transport |
5.97% |
893 269.00 |
|
University |
1.00% |
8 700.00 |
|
Total spent by business |
|
R29
023 798.00 |
|
|
|
|
Grants by arts discipline %
|
|
|
|
Craft |
4.76% |
390 086.00 |
|
Dance |
9.52% |
7
926 769.00 |
|
Education |
4.76% |
710 000.00 |
|
Festival |
12.70% |
3
581 620.00 |
|
Film |
3.17% |
2
451 362.00 |
|
Literature |
1.59% |
21 400.00 |
|
Multi-Discipline |
4.76% |
1
031 000.00 |
|
Music |
15.87% |
4
948 400.00 |
|
Theatre |
25.40% |
1
329 200.00 |
|
Visual
Art |
17.46% |
6
633 961.00 |
|
Total |
|
R29
023 798.00 |
|
|
|
|
|
% of grants by province |
|
|
|
|
14.29% |
344 892.00 |
|
|
1.59% |
20 000.00 |
|
|
26.98% |
8
536 256.00 |
|
International |
1.59% |
80 000.00 |
|
KwaZulu
Natal |
19.05% |
3
271 086.00 |
|
|
3.17% |
22 500.00 |
|
National |
6.35% |
12
514 939.00 |
|
|
26.98% |
4
234 125.00 |
|
|
|
R29
023 798.00 |
|
|
|
|
|
% of grants by strategy |
|
|
|
HIV/AIDS |
4.76% |
940 120.00 |
|
Marginalised
group |
4.76% |
2
603 670.00 |
|
Underserved
communities |
26.98% |
10
058 361.00 |
|
Women |
11.11% |
1
625 286.00 |
|
Youth |
46.03% |
12
829 956.00 |
|
Strategic |
6.35% |
966 405.00 |
BASA notes the absence of grants in
b.
Assistance/advice for arts sector
BASA
is constantly meeting with individual artists and arts organizations to assist
them in proposal writing, and to understand how best they might effectively
target potential sponsors and donors.
In addition to the fundraising seminar series, BASA
continues to address local arts groupings across the country. The regional representatives have been
particularly effective in addressing local concerns and queries, building local
membership and support, in their regions.
c.
Servicing BASA members
In
order to sustain membership and attract new members, BASA offers a variety of
benefits for them unique to BASA. This
may include events and access to theatre, galleries
etc. exclusively for the members, in addition to an electronic bulletin every
second month, and a newsletter focusing on case studies and arts/cultural news
3 times a year. The media partnerships
allow members an opportunity, where appropriate, to profile their engagement
with the arts.
d.
BASA Special Projects
These
are programmes or projects initiated by BASA or run in partnership with a third
party, that will encourage engagement by the corporate sector with the arts,
such as existing media partnerships; that will lift the profile of the arts
sector and position the arts in the public mainstream: and that will build
capacity within the arts sector.
Certain projects are ongoing, in particular the media partnerships:
others are seen as catalysts for further development.
Effectively,
the primary beneficiaries of special projects are arts practitioners across all
genres, through projects or programmes that target the arts sector direct eg. Fundraising seminar series, Fringe performers on the National Arts
Festival; or through media to reach and attract the interest of the business
sector and general public.
At
3-year intervals viz. 2001, 2004 and currently, BASA conducts research into the
attitudes of the business sector, the media and the general public towards arts
and culture. This is used to inform and
underpin approaches to business, and to provide a solid basis for the arts
sector to promote itself.
Excluding
the Business Day/BASA Awards at R279 2525,00, a total
of
R1
927 005 was committed to Special Projects, representing 44% of the DAC
allocation or 39% of BASA’s total income.
e.
Business Day/BASA Awards
BASA
has contracted with Business Day to partner in these annual awards that
recognize and highlight effective and innovative business-arts partnerships
BDFM have entered into the fourth 3-year contract, for the period 2007-2009
inclusive. . The relationship with Business Day has
created a direct channel for information on the arts to flow to business, and
has been the catalyst for product such as Business Day Art quarterly supplement
and the annual survey on business support for the arts.
The
awards represent the premier showcase of business-arts partnerships, and are
the platform for the arts sector to demonstrate how they can work productively
with business. The awards themselves,
made to the winning businesses, are commissioned artworks from emerging or
established South African crafters and artists: to date, Nesta Nala, Collen
Hlapo/Brighthouse, Eunice Mothetho,
Kaross Embroiderers, Jurgen Schadeberg, Colbert Mashile, BAT Centre wire
basket weavers, Marieke Prinsloo and Billie Zangewa.
The
level of entries grows each year, with more entries from small to medium sized
enterprises supporting local initiatives.
f.
Current partnerships
i.
Media partnerships
Targeting
the corporate sector :
Summit TV, DSTV channel 57 “The Business of the
Arts”: Classic fm “No Jacket Required”; Business Day
Art Supplement.
Targeting the general public:
Safm “Create” (with potential to be streamed across
other SABC Radio stations): Rootz Magazine
ii.
Business Day
As above. This
year, Business Day proposes a major campaign around the awards, drawing in its
readers.
iii.
Anglo American
Following
its initial partnership, simply as host to the awards on its downtown
iv.
Barloworld
Barloworld
have partnered with BASA to run the Barloworld ARTWORKS Mentoring Programme:
their funding provides a fee for the programme co-ordinator. Mentoring relationships exist as follows:
Trevor
Huddleston Memorial Centre with Bridget van Oerle, Buz
Agulhas
Theatre Works with Sara Ross, Schneider Electric (pending)
Johannesburg
Youth Theatre with Gail Lemmert, Barloworld
SANCTA with
Frik Vermaak, Obix Investments
Artist Proof
Studios with Gianni Mariano, Mastrantonio
Sibikwa
Community Theatre with Carel Nolte, Hollard
Umcebo Trust
with Gary Ninow, The Business Clinic
Caversham
Arts Centre with Gordon Cook, Vega
With
support from Barloworld, the programme will roll out countrywide wherever
artists have expressed a need and business people will volunteer to assist.
An
award for Barloworld Mentor of the Year was introduced in 2005.
v.
Empowerdex
Working
with BASA, Empowerdex is introducing a BEE scorecard for not-for- profit arts
and cultural organizations. It is
intended to pilot this with 10 arts organizations, and going forward to link
elements of corporate BEE ratings to participation in a Board Bank, to feed the
need for voluntary, effective and skilled individuals on the Board of
NPOs/PBOs.
vi.
Fuchs Foundation
This
foundation has extended its remit to include a focus on arts and culture, and
is currently working with BASA in the ongoing series of fundraising seminars
for arts organizations countrywide.
vii.
Issues
of governance, specifically responsibilities of Boards and Executive, are
problematic for many registered arts and cultural organizations. Working with BASA, the Institute will hold
day-long seminars for arts organizations to ensure they understand the legal
and financial accountability of a registered entity. This, in turn, will ensure ease in accessing
funds from public sector sources and other donors.
viii.
This local Spar and BASA have each committed R15
000,00 to establish an endowment fund to meet the
needs of local arts groups from Namahadi and
ix.
Deneys Reitz
Deneys
Reitz continue to offer advice and assistance pro bono
to bona fide arts organizations introduced through BASA.
x.
Webber Wentzel Bowens
WWB
worked pro bono with BASA to develop a proposal, submitted to the Ministers of
Arts and Culture and the Minister of Finance, for the introduction of some form
of tax concession to
incentivise individual or corporate ‘giving’ to the arts. This, BASA believes, would engender
substantial support for the arts and culture, as is borne out by example
elsewhere in the world, most notably the
xi.
Ochre Media
Ochre
is working pro bono with BASA to develop a brand campaign and advertising
campaign around the Business Day/BASA Awards.
xii.
Unisa
BASA
and Unisa are developing a national literary and reading project, and are
currently finalizing negotiations with a media partner and commercial sponsor.
g.
International links
BASA
is a member of the International Network of Business Arts Association, which
includes
Nicola Danby
Chief Executive Officer
Business & Arts
October 2006