More scope for charitable giving to boost arts

Media Statement: Hon Christopher Finlayson, Minister for Arts, Culture and Heritage 

Minister for Arts, Culture and Heritage Christopher Finlayson has welcomed the findings of a Ministry for Culture and Heritage report on giving and sponsorship in the cultural sector.

“This research complements the work the Ministerial Cultural Philanthropy Taskforce is undertaking in this area,” Mr Finlayson said. “The report illustrates ways in which cultural organisations can identify useful and practical fundraising opportunities, such as payroll giving.”

“It also serves to remind us of the huge remaining potential for individual giving to boost the arts in New Zealand – something I’ve asked the Cultural Philanthropy Taskforce to look at.”

The Ministry’s research, which covers the 2007-2008 tax year, found that just 3%, or $9.9 million, of the $383.2 million in gifts, grants and sponsorships received by cultural organisations came from individuals. Another 6%, or $22.6 million, came from companies. The rest came from central and local government, and from the Lottery Grants Board, trusts and foundations. Of those organisations that did not receive any cash, or received non-cash support from individuals, 78% had not sought it, while 87% of those without corporate support had not sought it.

“Increasing charitable giving by individuals on top of the government’s commitment to funding could have enormous benefits for the arts sector,” Mr Finlayson said.

The Ministry’s research found only 53% of 480 cultural organisations that responded had “donee status” with IRD. Without donee status, individuals or companies cannot claim tax relief on donations to that organisation. Unless an organisation has donee status, it cannot participate in the new IRD-administered payroll giving scheme which enables company employees to donate through regular, automatic deductions from that employee’s before-tax pay. 

“I’ve asked the Ministry to work with a range of partners across the cultural sector to help promote better awareness of recent changes to the tax system such as the payroll giving scheme that came into effect in January this year,” Mr Finlayson said.

“The Cultural Philanthropy Taskforce is also working to advise me on ways in which further tax changes and other incentives can support giving and sponsorship in the cultural sector.”

Cultural Philanthropy Taskforce member Margaret Belich has been chairing an online discussion forum on arts fundraising and attracting philanthropy, hosted on The Big Idea / Te Aria Nui website. The discussion can be found at smART talk 03 | Philanthropy: Getting Enough? 

The Taskforce consists of several of New Zealand's most high-profile supporters of the arts, appointed by the Minister to investigate areas of best practice in philanthropic giving including overseas examples, and to publicise New Zealand’s existing tax incentives for giving.

For more information about the Ministry’s research, including an Overview and the Full Report is here.