Australian author Alexis Wright poignantly reflects on the power of connection in her acclaimed work Carpentaria: “The land is our place. We are all related to each other and we are all related to the land.” This quote underscores the significance of interconnectedness and collective effort.

In the context of leveraging donations, it mirrors the idea that every individual contribution is a vital part of a grounded, larger whole. By recognising our shared responsibility and unity, arts organisations can harness the combined strength of their supporters to achieve remarkable outcomes, amplifying their impact and moving towards a more sustainable and vibrant Australian arts community.

Building strong community connections is essential for successful fundraising in the arts; collective efforts amplify impact and foster a sense of shared purpose among donors.[1]

Leveraging and matching donations are used across several fundraising strategies.

Capital Campaigns

In a capital fundraising campaign, leveraging is used to maximise the impact of donations by strategically employing a significant initial gift or pledge to encourage additional contributions. This is often achieved through a matching grant, where a major donor, government supporter, or institutional donor offers to match all donations up to a specified amount, effectively doubling or tripling the total funds raised.

By leveraging the initial gift in this way, the campaign creates a sense of urgency and motivates smaller donors to contribute, knowing their gifts will be matched. Best practice suggests that 65% of your capital fundraising campaign should be secured in the “quiet,” “leadership,” or “pre-campaign” phase before going public. In doing this, you can obtain a significant portion of the campaign goal from major donors to build momentum and credibility.

Matching funds not only increase the total amount raised in capital campaigns but also motivate smaller donors by creating a sense of urgency and participation in a larger cause.[2]

Giving Days

Leveraging, or finding matching donations, is one of the key factors in the success of giving days. Giving days are 12 or 24-hour fundraising events aimed at bringing communities together to raise awareness for a specific cause, increase engagement, and drive donations.

Belvoir Street Theatre ran a highly successful giving day program in 2023, and I asked Samantha Jones, Director of Development, about her thoughts on the power of leveraging.

“For Belvoir’s 2023 Giving Day campaign, which raised over $1.5 million for a foyer and bathroom renovation, leveraging helped maximise contributions at both the major gift and small community donation levels. For our community, seeing their donations quadrupled was a major driver in choosing to give, amplifying the impact of small donations to achieve a massive impact. As well as activating our existing donors, we had an incredible 298 donations from brand new supporters (never before donated to Belvoir) through this quadrupling campaign!”

Matching donations create a sense of urgency and excitement among donors. When donors know their contributions will be doubled or significantly amplified, they are more likely to donate and to donate more generously. This not only boosts the total amount raised but also strengthens the relationship between the organisation and its supporters. Highly engaged donors are more likely to become repeat contributors, advocates, and volunteers. This is particularly the case in giving days, but can apply equally to other fundraising campaign models as well. Strategic philanthropic donations can serve as a powerful catalyst for enhancing fundraising outcomes in the arts, creating a multiplier effect that transforms individual gifts into significant financial support.[3]

Collective Giving Circles

Collective giving circles are when a group of people with shared values come together to make change. The power (the leverage) is in the collective rather than the individual.

An example is Arts Impact100 which brings together at least one hundred members who each donate $1,000 annually. Their contributions are pooled to make high impact grants to charities or organisations. Western Australia launched Arts Impact 100 in 2021, which distribute approximately $250,000 annually, and this is likely to grow nationally. The group make large, $100,000 donations to independent artists and small arts organisations with a big vision.

“Giving circles exemplify how collective giving can mobilise resources and enhance community engagement, transforming individual contributions into substantial collective impact.”[4]

Collective giving circles effectively use leverage in fundraising by combining individual contributions to create a more substantial collective impact. Through pooling resources, enhancing donor engagement, leveraging expertise, creating multiplicative effects, ensuring transparency, and supporting broader community initiatives, giving circles demonstrate the power of collaborative philanthropy.

This approach not only amplifies the impact of each member’s donation, but also fosters a deeper sense of connection and shared purpose, making it a powerful tool for driving meaningful change in the community and contributing to the democratisation of philanthropy.

Matched (Government) Funding

At Creative Australia, our MATCH Lab, ACF Boost, and Plus1 programs are all underpinned by the power of leveraging or “matching” donations for their success. Put simply, if you raise a dollar Creative Australia will match it through these programs.

Matt Morse, Director of Private Investment Capability at Creative Australia, says:

“We’ve developed the Plus1 and MATCH Lab methodology in this way simply because it works. Since its inception a decade ago, success rates for participants in both programs is upwards of 90%. In other words, those organisations that are accepted into the Plus1 program and who accept the challenge of raising up to $50,000, which is matched by Creative Australia, overwhelmingly meet their target and are successful.”

The Australian Cultural Fund—Creative Australia’s digital fundraising platform—also uses the power of leveraging through matched funding via their ACF Boost program. The ACF Boost program offers independent artists and collectives the opportunity to seek matching donations on the basis that Creative Australia will match what they raise up to a pre-determined limit of $5,000.

Benefits

Increased Donation Amounts: One of the most immediate benefits of leveraging and matching donations is the potential for increased total contributions.

The introduction of matching gifts significantly enhances donor engagement, fostering a collective spirit of giving that ultimately leads to higher overall contributions.[5]

A matching gift is an expression of shared values. We create community when people join our cause. Understanding who and why people have already given helps us find our community of interest, those that we seek to associate with, and what we want to become part of.

Building Stronger Relationships with Major Donors: Leveraging donations can be a strategic way to involve major donors in the fundraising process. When a major donor agrees to leverage their gift, they are not only contributing financially but also playing a pivotal role in encouraging other donations and building your community.

Samantha from Belvoir puts it this way:

“Many of our major gift supporters were more inclined to donate, knowing they were not the sole supporter of the project and that their support would leverage gifts at all levels from our broader audiences.” Knowing that others have “skin in the game” is a persuasive message.

Expanding the Donor Base: Campaigns that include matching gifts often attract not only existing supporters, but also new donors who are motivated by the opportunity to have their contributions doubled. This can lead to an expanded donor base and increased visibility for the organisation. For example, a successful matching campaign might attract younger donors or individuals who had not previously been involved in supporting the arts.

Existing Pledges Can Help Digital Fundraising: For independent artists using the Australian Cultural Fund (ACF), securing donations prior to a digital or crowdfunding campaign going public can remove some of the pressure and can assist in calibrating a reasonable target. Having money in your campaign from seeking pledges prior to going public on the ACF can really turbo charge an Australian Cultural Fund Campaign (and help you sleep well at night!). Similar to the quiet phase of a capital campaign described above, independent artists can use this strategy to get a kick start prior to publicly launching their fundraising.

The Asking Is Easier: Asking becomes a lot easier if you already have pledged support. Most people find that a conversation that begins on the basis that you already have support and are seeking to have that support matched is a far less daunting proposition than a direct unmatched plea for money.

Consider the following: “We already have a donor who will match whatever we can raise (up to this amount)”; and “Would you consider a gift if we can get it matched by other donors or supporters?” These questions are a great way to start a conversation with a prospective supporter.

Boosting Visibility and Media Coverage: A well-publicised matching donation campaign can generate significant media attention and increase public awareness of the arts organisation. The prospect of matching gifts can attract media coverage, as journalists and influencers often highlight campaigns that offer exciting opportunities for the community to get involved. This increased visibility can lead to additional support, both financially and through increased attendance at events or exhibitions.

Everyone Loves a Bargain! Donors or supporters who see that their support is amplified or increased in some way through pre-existing pledges are much more inclined to jump in. Doubling your money is like buying two for one at the supermarket check out.

Implementing well-planned and executed matching donation campaigns requires time and planning. Creative Australia offers workshops that delve deeply into leveraging as a strategic fundraising tool. Sign up here to be notified about fundraising workshops offered by Creative Australia.

Steven Richardson is Creative Australia State Manager Development & Partnerships: VIC & TAS.

[1] Harvey, L. (2010). “The Importance of Building Community Connections in Arts Fundraising.” Journal of Arts Management, Law, and Society, 40(1), 29-47.

[2] Duncan, W. J., & White, G. (2014). “Leveraging Donations Through Matching Funds: An Examination of Capital Campaigns.” Nonprofit Management & Leadership, 24(3), 327-346.

[3] Bennett, R. (2006). “The Role of Philanthropic Donations in Supporting the Arts: A Study of Fundraising Practices.” International Journal of Arts Management, 8(3), 22-33.

[4] Gottlieb, L. (2021). “The Effect of Giving Circles on Donor Engagement and Fundraising Outcomes.” Journal of Philanthropy and Marketing, 26(2), 1-14.

[5] Sullivan, H. (2018). “Matching Gifts and Their Impact on Donor Engagement in the Arts.” Voluntary Sector Review, 9(1), 93-110.