Subject

Funding for Culture

  • code 06724
  • course 1
  • term Term 2
  • type OB
  • credits 3

Main language of instruction: English

Other languages of instruction: Spanish

Teaching staff

Head instructor

Dr. Miquel BASTONS - bastons@uic.es
MsU Mohammed Hassan ELRAZZAZ - melrazzaz@uic.es

Office hours

Apart from class hours, enquiries can be addressed by email to melrazzaz@uic.es

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 


Chapter  MATERIAL GRUPO ESPAÑOL
      Material
            Ejemplo Cash Flow ejemploflujocajavantir.xls 
            Ejercicios Balance ejerciciosbalance.xlsx 
            Grupo Español Presupuesto tesorería presupuestotesoreriaproducing.xlsx 
            Guía para la elaboración del plan de financiación de un proyecto guiontrabajofinalfinanciacion.doc 
            PRODUCING producing.notacultura.xls 

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: 80%

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

      Material
             casestudy12a13-session7.pdf 
            01. Classified Balance Sheet 01.classifiedbalancesheet.ppt 
            02.Classified Income Statement 02.classifiedincomestatement.ppt 
            03.Ratio Analysis 03.ratioanalysisi.ppt 
            04.Uses and Limitations of Ratio Analysis 04.ratioanalysisii.ppt 
            05.Break-Even and Time-Value of Money 05.break-evenatimevalueofmoney.ppt 
            06.First Block Review 06.firstblockreview.ppt 
            07.Equity Financing 7.equityfinancing.ppt 
            08.Debt Financing 8.debtfinancing.ppt 
            09. Financing Systems - Comparative Analysis financingsystemcomparativeanalysislecture-sherif.ppt 
            11.Sponsorship 11.sposnsorship.ppt 
            12.Crowdfunding 12.crowdfunding.ppt 
            13. Public Finance 13.publicfinance.ppt 
            14.Business Angels 14.businessangels.ppt 
            15.Impact of Funding Decisions 15.impactoffinancialstatements.ppt 
            16. Funding Tools in Practice 16.fundingtoolsinpractice.ppt 
            17.Fundraising Plan fundraisingplan-sherif.ppt 
            18.Budgeting 18.budgeting.ppt 
            Casa Study 07 - Financing of Chinese Cultural Enterprises casestudychineseenterprises.pdf 
            Case Study 01 - Louvre's Terms of Use casestudy1-louvremuseumstermsofuse.pdf 
            Case Study 02 - The Louvre in Abu Dhabi casestudy2-thelouvreinabudhabi.pdf 
            Case Study 05 - Value of Global Art Market casestudy5-valueofglobalartmarket.pdf 
            Case Study 06 - China's Cultural Programme casestudy6-chinasculturalprogramme.pdf 
            Case Study 08 - Risk Mitigation for Cultural Loans in Spain casestudy-riskmitigationforculturalloans.pdf 
            Case Study 09 - Facebook on the Brink of Power Shift casestudyfacebookonthebrinkofpowershift.pdf 
            Case Study 11 - Partnering with UNESCO casestudy11-partneringwithunesco.pdf 
            Case Study 13 - Financing Cultural Initiatives financingculturalinitiatives.pdf 
            Case Study 14 - Pros and Cons of Angel Investors casestudy14-prosandconsofbusinessangels.pdf 
            Case Study 16 - Louvre Budget Blues casestudy16-louvrebudgetblues.pdf 
            CAST- financamentdelsmuseuspublics_casmacba_v2.pdf 
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