Funding for Art Business – JSS3 Cultural & Creative Arts Lesson Note (Second Term)

Funding for an art business is the money an artist raises to buy art materials, tools and equipment and to rent an exhibition place.

Behavioural objectives

By the end of the lesson, students should be able to:

1. state why artists need to source funds;
2. list sources of funds for artists;
3. state ways of marketing artworks;
4. describe other ways in which funds for artwork can be raised;
5. distinguish between a loan and a grant.

Why do artists need funds?

Artists need funds because art materials, tools and equipment are expensive, and renting an exhibition place costs a lot of money.

• Art materials: paint, brushes, paper, clay, cloth and dyes must be bought again and again.
• Tools and equipment: items such as easels, carving tools and work tables cost money to buy and replace.
• Exhibition space: a hall or gallery must be rented to show the artworks to buyers.
• Advertising: telling people about the work also costs money.

What are the sources of funds for artists?

There are six common sources of funds for artists: non-governmental organisations, parents, relatives, personal savings, the community and the government.

• Non-governmental organisations (NGOs): groups that are not part of government and may support young artists and art projects.
• Parents: they can give money for materials, training and starting up.
• Relatives: uncles, aunts, brothers and sisters can lend or give money.
• Personal savings: money the artist has saved from earlier work or allowances.
• Community: people in the town, village or area can contribute to support a local artist.
• Government: government bodies may support artists through programmes for the arts.

What are the ways of marketing artworks?

Marketing artworks means making people aware of the works so that they buy them, and there are three common ways.

• Hawking: the artist carries the works around to offer them to people directly.
• Exhibitions: the works are displayed in a gallery or hall where visitors can see and buy them.
• Advertisement: the works are promoted on television and other media, such as radio, newspapers and the internet.

What other ways can artists raise funds?

Besides the main sources, artists can raise funds through personal sales, crowdfunding, loans, workshops, sponsorships, hawking and grants.

Personal sales

• The artist sells directly to friends, family or patrons who like the work.
• This includes selling finished pieces and accepting commissions (work made on request).

Crowdfunding

• The artist gathers small contributions from many people on a crowdfunding platform.
• The artist presents the project, and interested people give financial support.

Financial institutions

• The artist may take a loan from a bank or similar institution.
• The artist must be careful about the repayment terms.

Events or workshops

• The artist hosts art classes, workshops or events.
• Participants pay a fee, which becomes income for the business.

Sponsorships

• Businesses or organisations agree to pay for an art project.
• The artist may in return display the sponsor’s name at the event or on the work.

Hawking

• The artist sells artwork directly to the public in busy areas or markets.

Art grants

• The artist researches and applies for grants meant to support the arts.
• This can be a good funding option.

What is the difference between a loan and a grant?

A loan is money borrowed from a bank or other lender that must be paid back, usually with interest.

A grant is money given to an artist for a purpose, usually without any need to pay it back.

How does crowdfunding work?

Crowdfunding is a way of raising money by collecting small amounts from many people, usually online.

1. The artist chooses a crowdfunding platform.
2. The artist describes the art project and the amount needed.
3. The artist shares the project with friends, family and the public.
4. Interested people give small amounts of money.
5. The artist uses the money to carry out the project.

How should an artist choose a funding option?

An artist should choose the options that best fit the business model and artistic goals.

• Amount needed: pick a source that can cover the cost of the project.
• Repayment: avoid a loan that the business cannot pay back.
• Time: some sources, such as grants, take time to apply for.
• Fit: a sponsor or grant should match the kind of art the artist makes.
• Mix of sources: an artist can use more than one option together.

Evaluation

1. Why do artists need to source funds?
2. List four sources of funds for artists.
3. State three ways of marketing artworks.
4. What should an artist be careful about when taking a loan from a bank?
5. Explain how crowdfunding works.

Assignment

Choose any three ways of raising funds for an art business from the lesson. Explain each one in one or two sentences.