Universitat Internacional de Catalunya

Funding for Culture

Funding for Culture
3
5304
1
Second term
OB
Main language of instruction: Spanish

Other languages of instruction: English

Introduction

 

This course introduces the students to the basics of finance and equips them with practical financial analytical tools that they can apply to cultural projects, events or companies.

 

Pre-course requirements

 

A basic understanding of the cultural and creative industries and the peculiarity of cultural products.


Pre-course requirements

Those of the Master's Degree.

Objectives

-          To understand the pros and cons of the basic financial statements;

-          To understand the significance of different financial rations;

-          To understand the potential and diversity of fundraising tools available for them;

-          To understand the pros and cons of different financial models;

-          To understand the opportunity costs of their investment decisions.


Competences/Learning outcomes of the degree programme

Basic competencies

-          To know how to apply the knowledge acquired in sophisticated, multidisciplinary contexts relating to the field of study;

-          To deal with complexity in the company and the market, as well as uncertainty in decision-making process.

General competencies

-          To properly manage economic resources in the cultural and creative field;

-          To attract funds by tailoring campaigns to different audiences.

Cross-disciplinary competencies

-          To build strong donor relationships through fundraising campaigns. 

Learning outcomes of the subject

-          Prepare and interpret different financial statements;

-          Apply ratio analysis tools in order to evaluate different dimensions of a company’s performance;

-          Take informed investment decisions guided by an understanding of the time-value of money and the risk-return trade-off;

-          Use capital and debt financing while mitigating for the risks associated with them;

-          Design, direct and evaluate sponsorship plans for cultural projects and/or companies;

-          Untap the full potential of self-generated income and public financing.

Syllabus

First Block: Financial Instruments

-          Balance Sheet

Breakdown of Assets, Liabilities and Equity; Depreciation

-          Income Statement

Breakdown of Revenues and Expenses; making profit and absorbing loss

-          Cash Flow

Cash flow cycle and working capital

-          Ratio Analysis

Liquidity, Debt Management, Asset Management and Profitability

-          Investment Analysis

Time-Value of Money, Cost-Benefit Analysis

 

Second Block: Financing Systems

-          Equity Financing

Using owners’ own funds / equity

-          Debt Financing

Using short-term and long-term debt

-          Comparative Analysis

Pros and Cons of equity and debt financing

 

Third Block: Fundraising

-          Sponsorship

Developing a sponsorship plan

-          Public Finance

Grants and Subsidies

-          Crowdfunding

Grassroots funding and online campaigns

-          Business Angles

Angels and other innovative ways of raising funds

-          Fundraising Plan

Developing a comprehensive and balances fundraising plan

-          Budgeting

Building a budget 



Teaching and learning activities

In person



 The course will apply two methodologies:

1. Lectures: Theoretical concepts will be presented and discussed.

2. Practical exercises: students will have to solve practical exercises (usually related to the case studies presented during the lectures).

Evaluation systems and criteria

In person



Group Assignments: 50%

Individual Assignments: 30%

Attendance and Class Participation: 20%

Bibliography and resources

Operational Finance

  • Martínez Abascal, Eduardo. Finance for managers, Mc Graw Hill, IESE Business School, Madrid - 2012.
  • Fundació Gala-Salvador Dalí. Annual Report 2010 & 2011. Fundació Gala-Salvador Dalí.


Public Funding

  • John Pick. The Arts in a State - A Study of Government Arts Policies from Ancient Greece to the Present  - Bristol, 1988.
  • A Study on the Contribution of Culture to Local and Regional Development - Evidence from the Structural Funds - Final Report, September 2010 and Anexes 1 & 2 - Strategy & Evaluation Services with ERICarts.
  • Arjo Klamer, Lyudmilla Petrova, Anna Mignosa. Financing the Arts and Culture in the European Union -  A Study requested by the European Parliament’s committee on Culture and Education - Stichting Economie and Cultuur.


Private Funding

  • Karen Nielsen. Le Mécénat mode d'emploi. Iesa. Ed Economica. Paris, 2007.

Teaching and learning material


Print version