Where your creative project aligns with the interests of a business, you might think about sponsorship. The trick here is that the benefit will need to be mutual.

For a business, this usually means sponsoring projects which generate sales or positive PR, or which align with the personal interests of the business owner. Cash sponsorship is great, but don’t discount in-kind support or donations of goods, as long as they’re beneficial in completing your project.

A project might be suited to sponsorship if it involves something a business is already interested in. If your project takes place in a town where the business is active or wants to be active. If it tackles an issue which is part of company’s core business; for instance a project about mental health might be of interest to a health insurance provider.

Projects which deal with controversial or political issues might find it harder to attract support from a business.

Sponsorship comes with responsibilities. Sponsors need to be looked after and your relationship with them nurtured. Both parties need to be sure that their association reflects positively on both of them, not just for this project but for all future potential collaborations.

Suited to projects which align with a business’s goals and/or values.

Pros: Access to resources – cash and in-kind -which can help get your project off the ground.

Cons: The need to nurture your relationships sponsors and ensure arrangements works for both parties.

Factsheet: Sponsorship 101

The crowdfunding model offers supporters various rewards in return for their money. Donations offer no such rewards, but they can still be an effective way of raising funds.

Attracting donations works well for projects which have a social outcome as well as a creative one. People will open their wallets for a good cause, so if your arts project aligns to one, donations could be the way to go.

You can run a donations drive which aims to generate lots of small donations from all and sundry, although crowdfunding has largely replaced that model. But it hasn’t yet replicated the model of attracting sizable donations from high net worth individuals.

This method will work best if you have a network of contacts who are already admirers of your work and can connect you with others. Relationship building skills are essential here, but you may not need a large number of substantial donors to get your project off the ground.

The more tangible the outcome the better: the purchase of a musical instrument, a scholarship for a young artists, or a funding a residency are examples of specific requests donors can easily understand and get behind.

You may also need a connection to a deductible gift recipient (DGR) endorsed organisation in order to offer a tax deduction. Our fundraising platform for artists and arts organisations, the Australian Cultural Fund, allows individuals and organisations without DGR status to offer tax deductibility to their donors.

Suited to projects with short term tangible results and those which progress a social cause.

Pros: Small number of major donors can make a project happen quickly and without too many caveats.

Cons: High net worth individuals can be hard to find and relationships can take time to build. Need to ensure you can offer a tax deduction.

Link: The Australian Cultural Fund

All federal, state and local government organisations have programs which support arts projects. Every jurisdiction has different funding priorities, so it’s important to research grant rounds and identify who’s eligible to apply.

Competition for government funding is high and so only the very best applications tend to be successful; this means that the artistic quality of your project is always closely scrutinised.

In addition, application and acquittal processes can be highly detailed. On the other hand, funding from a government organisation can have positive reputational benefits as well as offering significant financial support.

Organisational funding from arts funding bodies is difficult for new entrants to achieve, as many well established organisations continue to be competitive in funding rounds.

Project funding can be a way in, for both new organisations and individual artists. Ongoing communication with funding administrators is useful to know what opportunities are available and when to apply.

Suited to arts and screen projects which can demonstrate high artistic quality.

Pros: Can offer significant financial support.

Cons: Highly competitive, with onerous application and acquittal procedures.

Links: Plus1 and MATCH Lab funding programs | The The Funding Centre and Artshub both offer grantfinders (note: subscription service).

Microfinance products – where loans for small amounts provided at low or no interest rates – have emerged in a number of different sectors in recent years, including the arts.

For many, these are an attractive option for funding a range of projects, but are particularly useful for purchasing capital items, from which further revenue can be generated.

Online platforms for microfinance such as Kiva.org allow for a range of community projects to seek support from a range of borrowers. Other microfinance programs, like goodshepherdmicrofinance.org.au, are run by sole operators. Many financial institutions will also provide small and low cost loan options, which will have a variety of qualifying criteria.

The important point here is that no matter how small the loan or the repayments, you are still responsible for the repayment of the debt. If you’re considering this as an option, you need to be confident that you can meet the repayments and be aware of the consequences of defaulting on the loan. Microfinance is still a credit arrangement when all is said and done.

Suited to small scale projects, including the purchase of capital items which generate further revenue.

Pros: Can be a quick and effective way of purchasing assets and accelerating projects.

Cons: Loans and interest – although small amounts – must be paid back.