Most of culture and arts organizations in Korea relies heavily on public support funds and corporate sponsorships or supports to secure financial resources for their activities, Consequently, it is easily affected by external environmental changes suc...
Most of culture and arts organizations in Korea relies heavily on public support funds and corporate sponsorships or supports to secure financial resources for their activities, Consequently, it is easily affected by external environmental changes such as economic depression and so forth. The amount of funds shows a decline every year although they try to raise culture and arts promotion funds through the donation culture activation in culture and arts and their financial resources from donation support funds are on the decrease while the ratio of public support funds are on the increase year by year.
This study has been carried out to draw up a development plan for financial resources management expert of culture and arts organization, as a self-reliant method of their stable and active private finances procurement, by analyzing current status and performing relative case studies.
Firstly, as a current status analysis, the change and ratio of annual income structure for public support funds, self-revenue, and donation support funds has been analyzed, compared to the total incomes in the past three years of performance facilities, cultural art centers, and specialized arts corporation or organizations excepting performing groups. In addition, to figure out the limitation of public supports and the necessity of private supports, the comparative analysis with budgets of the central government's department exclusively responsible for culture of major countries was performed and the current status of culture and arts promotion funds of Korean Culture and Arts Committee was analyzed as well as the donation expenditures and corporative supports in Korea were investigated.
Secondly, the organization structure related to financial resources development of culture and arts organization was comparatively analyzed with foreign cases and the overseas education curriculum for fund-raising experts, the domestic educational program of non-profit organizations, and the current educational status of financial resources development in the domestic arts were closely analyzed.
The following conclusions have been drawn from the comparative analysis and investigation.
First of all, the public support funds account for almost a half of the total income. It reflects that culture and arts organizations' dependence on public support funds is high and the domestic donation culture for culture and arts is not established yet according to the annual decrease of self-revenue and donation support funds. The public culture and arts support in Korea is typically from the national treasury or culture and arts promotion funds. Considering the economy size of Korea, however, the scale and ratio of cultural budget should be increased for smooth public supports in the area of culture and arts because of the government's low expenditure on the cultural sector, but it is hard to be solved since the cultural budget is regarded as a subsidiary matter in the order of priority compared to the budgets of national defense, economy, and industry.
Even though Culture and Arts Committee is consistently collecting culture and arts promotion funds from other financial resources such as private or corporate donations through the activation of donation culture to meet the demand of steeply increasing cultural and artistic creative and entertainment activities since the fund-raising was abolished, it is decreasing every year. Therefore, the private efforts and supports are absolutely necessary for the financial stability of culture and arts organizations to overcome the financial danger of being exhausted.
Regardless of the annual steady increase of corporate and private expenditures on donation in Korea, the total amount of private donation on culture and arts excepting other's family events and religious offering accounts for 0.2% and the corporate donation even including the sports sector accounts for 8.7%, which is very low.
The corporate supports on culture and arts are more likely to be supports on their own programs or events for corporation PR than pure supports. The donations for supports and sponsorships are relatively low and their motives are also 'contribution to community', 'marketing strategy', or 'organization management'. Moreover, the corporate supports on culture and arts are sensitive to economic situations, so it would not be stable for financial resources development of culture and arts organizations. Thus, instead of depending on these unstable financial resources which are easily fluctuating by environmental factors, donator recruitment, program implementation, and human resource development for the organizations are necessary for settled financial resource procurement through private donations.
Secondly, the concept for financial resources development of organizations, executives, and staff members should be changed above all things so that culture and arts organizations can develop financial resources more organizationally and systemically. As foreign cases, various programs development and support management should be carried out for financial resource procurement with proper organizations and human resources by establishing financial resources development committee or separate organizations and departments.
CFRE, a fund-raising expert certificate authentication institution in U.S., grants certifications with educational and training curriculum for fund-raising experts by strictly verifying professional theory, skills, and qualifications and reviewing responsibility for ethical criteria and working-level fund raising career over a given period. Furthermore, fund-raising expert educational institutions systemically provide an introduction course on AFT financial resource development (raising fund) so that experienced working-level employees can study from fundamental fund-raising to advanced skills for CFRE preparation.
The Hope Institute, Korean Donation Culture Institute,