Survey of Sponsorship of Cultural Events and Activities
Contents | Foreword | Introduction | Analysis | Total Responses | Sample Survey Form

Analysis

CULTURAL SPONSORSHIP IN THE PAST THREE YEARS

Number of events sponsored

3.1

Of the 70 businesses that took part in the survey, 58 (83 percent) had provided some cultural sponsorship during the previous three financial years. The most common number of activities to have been sponsored was two, with 16 businesses (28 percent) reporting sponsorship of two different events or activities. Two-thirds (67 percent) of all businesses that had undertaken cultural sponsorship in the last three years had sponsored four or fewer different types of event or activity (see table 1).

Table 1: Number of businesses that had undertaken cultural sponsorship in previous three financial years (1996-97, 1997-98, 1998-99), by number of different events/activities sponsored
Number of events/activities	Number of businesses sponsoring in last 3 years	Percentage of businesses sponsoring different numbers of events
1	8	14
2	16	28
3	9	16
4	6	10
5	5	9
6	4	7
7	4	7
8	0	0
9	2	3
10	2	3
11	1	2
12	1	2
Total	58	100
Note: Percentages may not sum to 100 due to rounding.

Types of events sponsored

3.2

Table 2 shows the types of cultural sponsorship undertaken over the previous three financial years. Arts festivals were the single most preferred event to sponsor but these were closely followed by the provision of free or reduced-cost services; single productions or performances by an arts or cultural group; operational costs of a cultural organisation; an annual season of performing arts; and the funding of exhibitions (touring or not). At least 10 percent of the businesses that had provided cultural sponsorship in the previous three financial years had contributed to one of these types of event or activity.

3.3

The activities least preferred by surveyed businesses over the previous three financial years were contributing to the capital costs of a cultural organisation; promotional tours by artists, writers, etc; and sponsoring international tours by New Zealand performers or artists, or international exhibitions of New Zealand work. Only 3 percent of businesses had sponsored these types of events in the three previous financial years.

Table 2: Number and percentage of businesses that had undertaken different types of cultural sponsorship in previous three financial years (1996-97, 1997-98, 1998-99)
Event/activity sponsored	Number of businesses sponsoring in last 3 years	Percentage of businesses
Arts festivals	28	12
Provision of services	26	11
Single productions	24	10
Operational costs	23	10
Annual season	22	10
Exhibitions	22	10
Competitions/awards	20	9
Educational projects	15	7
Scholarships	12	5
Infrastructure	10	4
International tours	8	3
Promotional tours	7	3
Capital costs	6	3
Other	6	3
Total	229	100

Proportion of sponsorship budget spent on cultural sponsorship

3.4

When asked about the percentage of their total sponsorship budget given to cultural sponsorship in each of the previous three financial years, more than 50 percent of businesses reported "less than 20%". This shows that the majority of businesses spend most of their sponsorship budget on non-cultural events and activities.

3.5

In each year, only 7 or 8 businesses had spent 80 percent or more of their sponsorship budgets on culture. This equated to 13 - 15 percent of businesses each year dedicating nearly all their sponsorship budget to funding cultural events and activities.

Importance of factors in deciding whether to sponsor

3.6

Businesses that had provided cultural sponsorship in the previous three financial years were asked to rank the importance of a number of factors in deciding whether to sponsor a cultural activity. Table 3 shows these factors ranked from the most important to the least important. The ranking has been decided by the percentage of businesses describing the factor as "very important" in their decision making.

Table 3: Percentage of businesses ranking factors by importance in their decision making on cultural sponsorship
Factor	Very important %	Quite important %	Little or no importance %
Increase brand awareness	62	29	9
Reach a particular market segment	60	29	11
Be the sole sponsor, or one of a small number of sponsors	53	28	19
Provide client hospitality	47	39	14
Associate business with activity or event of national significance	39	43	19
Serve the public good	35	52	13
Associate business with activity or event of local significance	35	38	27
Associate business with creative work	27	35	37
Associate business with particular cultural organisation or type of activity	25	46	29
Get television exposure	17	27	56
Associate business with activity or event of international significance	10	29	62
Associate business with tradition	8	31	62
Support personal interests of business's management or board members	2	33	65
Note: Percentages may not sum to 100 due to rounding.

3.7

The most important factor in deciding whether to proceed with cultural sponsorship was found to be the business's perceived ability to increase its brand awareness. Sixty-two percent of the businesses that ranked that factor assessed it to be "very important". At the other end of the importance scale, 1 in 10 businesses assessed increasing brand awareness as of "little or no importance".

3.8

Other factors which more than half the businesses assessed as "very important" were reaching a particular market segment, and being the sole sponsor or one of a small number of sponsors. Just under half (47 percent) also assessed the ability to provide client hospitality as being very important.

3.9

The least important factor in cultural sponsorship decision making was supporting the personal interests of management or board members. Only 2 percent of businesses answering the question ranked that factor as "very important". Also ranking low in importance were associating the business with tradition; associating the business with an activity or event that is of international significance; and getting television exposure. Fifty-six percent of businesses assessed getting television exposure as of "little or no importance" in their decision making on whether to sponsor a cultural event or activity.

Importance of funding from central government

3.10

Almost three-quarters (73 percent) of the businesses answering the question said they gave no weight at all in their decision making to whether the activity or organisation was getting funding from central government or a central government agency. One in five businesses (20 percent) said it may make them less willing to sponsor the activity or event. The remaining 4 businesses (7 percent of the total) said it may make them more willing to sponsor it.

3.11

Sixteen businesses (29 percent of those answering the question) provided comment on why they had answered as they had. Half the comments came from businesses that indicated that existing government funding would have no impact at all in deciding whether to sponsor an activity or organisation. Most stressed the importance of considering each case individually and applying their own criteria in the decision making. Others acknowledged the fact that the cultural sector obtains its income from a variety of sources and indicated that further support was likely to be needed, whether or not government was providing funding.

3.12

Five businesses commented after indicating that government support would make them less likely to sponsor. Most focused on the benefit that must accrue to their own organisation, noting that sharing a funding role with government may reduce the profile of their business in the sponsorship.

3.13

Three businesses elaborated on their response that government funding would make them more likely to sponsor a cultural activity or organisation. The benefits of joining with government in such an undertaking were seen as being a reduction in the risk of the activity not being managed professionally, more affordable sponsorship for corporates, and the desire to be seen as part of a "family" of sponsors.

Desire to have a say in the content of event or activity being sponsored

3.14

Forty-two percent of businesses answered that they have never wanted to have a say in the content of a cultural activity or event they are sponsoring. More than half (55 percent) said they wanted a say "in some circumstances". Only two businesses (4 percent of the total) said they always wanted a say.

3.15

Seventeen respondents offered comments on their answers. Most comments came from businesses that said they would want to have a say in content in some circumstances. They felt a need to minimise the risk of association by ensuring quality and making sure the content was consistent with their culture, image and values. Of those businesses that would never want a say in content, most stated that content would already have been assessed when deciding whether to sponsor. The ethics of interfering in artistic expression also rated a mention.

INTENDED FUTURE SPONSORSHIP

Number of events which might be sponsored

3.16

Of the 70 businesses that took part in the survey, 13 indicated they were not intending to be involved in cultural sponsorship over the next three years. Of those, seven had also not been involved in the previous three years.

Table 4: Number of businesses that might undertake cultural sponsorship in next three financial years (1999-2000, 2000-01, 2001-02), by number of different events/activities which might be sponsored
Number of events/activities	Number of businesses that might sponsor in next 3 years Percentage of businesses	Percentage of businesses that might sponsor different numbers of events
1	13	23
2	10	18
3	8	14
4	8	14
5	8	14
6	3	5
7	4	7
8	3	5
Total	57	100

3.17

Fifty-seven businesses (81 percent) indicated that they might sponsor cultural events or activities in the next three financial years. The most common number of cultural activities which businesses felt likely to sponsor was one. Almost one-quarter of businesses that felt they might sponsor (23 percent) indicated only one activity. Another 18 percent reported that they might contribute to two different types of activity during the next three years. At the upper end of the scale, just under one-third of businesses (32 percent) indicated an interest in sponsoring five or more different types of cultural event or activity (see table 4).

Types of event which might be sponsored

3.18

The performing arts were the activities to which the greatest number of businesses felt they might contribute in the next three years. Eighteen percent of businesses indicated the performing arts as a possible choice for their sponsorship. Also ranked highly amongst preferred activities and events were the provision of free or reduced-cost services; arts festivals (either whole festivals or single festival events); cultural competitions, awards, prizes and scholarships; and exhibitions. More than 10 percent of businesses described each of these as being possible recipients of their future sponsorship.

Table 5: Number and percentage of businesses that might undertake different types of cultural sponsorship in next three financial years
Event/activity which might be sponsored	Number of businesses that might sponsor in next 3 years	Percentage of businesses that might sponsor
Performing arts	35	18
Provision of services	27	14
Arts festivals	27	14
Competitions/awards	21	11
Exhibitions	21	11
Operational costs	18	9
Other cultural events	18	9
Educational projects	15	8
International tours	11	6
Promotional tours	6	3
Total	199	100
Note: Percentages may not sum to 100 due to rounding.

3.19

The least preferred activities or events were promotional tours by artists, writers, etc (3 percent of businesses); international tours by New Zealand performers or artists, or international exhibitions of New Zealand work (6 percent of businesses); and educational arts or heritage projects (8 percent of businesses).

Proportion of sponsorship budget which might be committed to culture

3.20

Those businesses that indicated that they might undertake cultural sponsorship in the next three financial years were asked how much of their sponsorship budget they thought they would be committing to cultural events and activities. In each of the next three financial years, more than 50 percent of businesses indicated that they think they will be committing up to 20 percent of their budgets to cultural sponsorship. Around or just under one-quarter indicated a likely expenditure of more than 60 percent of their sponsorship budget on cultural events and activities.

Comparison of next three years with last three years

3.21

Of those businesses that answered the question, 57 percent believed their cultural sponsorship in the next three years would stay about the same as the last three years, 18 percent thought it would increase and 12 percent thought it would decrease. The remaining 12 percent did not yet know.

Factors influencing businesses to reduce their cultural sponsorship

3.22

Businesses that thought their cultural sponsorship would decrease over the next three years compared to their previous commitments were asked what factors had influenced that change. Only one business said it was because they were dissatisfied with what the business had got from past sponsorship. Almost equal numbers of businesses indicated the state of the economy, sponsorship of "other things", and "other factors" as influencing their business to make the change.

3.23

Eight businesses chose to comment on their answers. The most common factor cited as a reason for the change was internal review. Several businesses observed that there had been a change in their focus or business priorities. This had resulted in strategic changes, including budget cuts, and cultural sponsorship had been judged inappropriate as a result.

Non-cultural sponsorship

3.24

Businesses that indicated their cultural sponsorship would be reducing because they would be sponsoring other things were asked to state what these were. No businesses indicated sponsorship linked to the Americas Cup, two businesses indicated sponsorship linked to each of the Olympic Games and millennium events, three will be sponsoring other major sporting events, and four sponsoring other things (including sport, the environment, and travel-related television programmes).

Amount of sponsorship available for cultural events and activities

3.25

Lastly, businesses were asked what they thought would happen to the amount of sponsorship available from New Zealand businesses for cultural events and activities. Of the 55 businesses that expressed a view, 10 (18 percent) thought it would increase, 22 (40 percent) thought it would stay about the same, and 23 (42 percent) thought it would decrease.

3.26

Twenty-three businesses commented on their answers, 70 percent of them expressing the view that cultural sponsorship would be likely to decrease over the next three years. The most common reasons cited for this included the state of the economy, upcoming major sporting events, and an inability by cultural organisations to show the commercial value of cultural sponsorship and thereby obtain their share of a squeezed sponsorship dollar.

3.27

Optimistic respondents offered only a few comments. These included the likelihood of a rise in "corporate citizenship", and cultural organisations becoming more professional in realising that sponsorship must be a business proposition not just a philanthropic arrangement.

General comment

3.28

Businesses were invited to comment on any of the issues covered by the survey and sixteen did so. Most respondents merely described their current sponsorship behaviour but some made comments on more general issues. These included the disappearance of sponsorship budgets (at least until business confidence returns), the difficulties cultural organisations have in securing funding, the need for those seeking sponsorship to focus on the tangible benefits to business, the need for government investment in cultural events, and the need for both the private and public sectors to work together in the area of cultural funding.