Uniquely among national museums and galleries of similar scale, Tate raises the majority of its revenue from self-generated income. In 2004–5 and 2005–6, 58% of revenues were self-generated. This is a tremendous strength but leaves Tate vulnerable to economic downturn and fluctuations in visitor numbers. Achieving break-even in 2005–6 was therefore particularly encouraging given the impact of the 7 July 2005 bombing of London and the subsequent downturn in tourism throughout the summer of 2005.
More positively, Tate relationships with sponsors and corporate members, donors, patrons and members remained strong through the biennium. This period saw the welcome continuation of a number of major sponsorships for Tate, notably Unilever’s support for the programme of Turbine Hall commissions, Bloomberg’s support for Tate Modern’s pioneering interactive interpretation and BP’s support for Tate Britain’s displays. Major new partnerships included the sponsorship of the Turner Prize awards by Gordon’s gin, HSBC’s sponsorship of Frida Kahlo and various exhibition associations with Essilor brand Varilux, Deutsche Börse, Swiss Re and Diesel. A highlight of 2005 was BT and Tate Online winning the Sponsorship Continuity category at the 2005 Hollis Sponsorship Awards; Tate is delighted that BT has confirmed the continuation of its sponsorship beyond 2005.
Gifts of cash, bequests and gifts of works of art are a vital source of support to Tate, enabling exhibitions, acquisitions, conservation and education projects and scholarship. Two significant bequests were made to the American Fund for the Tate Gallery during the period 2004–6, by late Trustees Sir Edwin Manton and Richard B. Fisher. Among those works entering the Collection partly or wholly through the generosity of individuals over the last two years were works by John Constable, Stanley Spencer, Roni Horn and David Smith. The exhibitions Inverting the Map and Anthony Caro would not have been possible without the generous support of a wide range of individuals.
A number of special interest donor groups were developed during the biennium, including the Frieze Art Fund, enabling Tate to buy works at the Frieze Art Fair in London, and the Film and Video Fund, focusing on buying new works in this field. Tate’s International Council supported a number of international exhibitions and acquisitions, while the American Patrons of Tate provided valuable support for acquisitions, exhibitions and scholarship. Funding from trusts, foundations and the public sector continued to underpin major acquisitions, as described above.
Tate Patrons underwent a restructure in the early part of 2006 with new levels of giving created within the scheme. This much needed annual support has expanded the funding remit of this group, which has already contributed many works to the Collection, and lent impetus to initiatives such as the creation of the Turner Prize. Tate Members, meanwhile, have enjoyed two very successful years, with membership rising from 55,000 to 74,000 during the biennium, renewal rates rising from just under 70% to near 80% and the percentage consenting to Gift Aid from 56% to 62%. In sum, the membership was not only larger but more loyal and committed, and Members were able to give £2.2 million to Tate during 2004–5 and £2.7 million during 2005–6.
Tate Enterprises Limited, the trading arm of Tate and comprising Catering, Retail, Publishing, Product Development, Picture Library and Licensing, enjoyed a successful two years. Given the effect of the 7 July 2005 bombs in London, this was particularly welcome, and was in part a consequence of some very popular exhibitions which created great opportunities for the business. The combined turnover of TEL was £25,164,149 in 2004–5 and £26,621,902 in 2005–6. The company’s entire profit was returned to Tate: £3,596,545 in 2004–5 and £3,245,100 in 2005–6.
Retail sales in particular were boosted by the popular success of the exhibition programme in the biennium: over £1 million was taken at Tate Modern during Frida Kahlo, and even more for Turner Whistler Monet at Tate Britain. Sales of merchandise made for Tate were boosted by some very successful collaborations with designers like Orla Keily and Ally Cappelino. The beautiful glass shop opened on level 2 of Tate Modern in 2005 and proved particularly suitable for presenting art materials, gifts and children’s books. In addition, Art on Demand kiosks opened in both London sites during 2005, enabling visitors to source prints not readily available in mass-produced form; this service was also launched online, doubling internet sales.
The focus for Tate Catering over the biennium was both a consolidation and an expansion of its business. The company continued to work with site directors in London, Liverpool and St Ives to service the sites, while playing an increasingly important role in the relationship with Tate sponsors and the wider community through the development of its events business, Tate Entertaining. In addition, two new business opportunities were taken forward in 2004–6, with Tate Catering expanding its business to supply the catering provision to the Fitzwilliam Museum, Cambridge and the Ice Café at Somerset House. These operations were run under the banner of the host organisation and were not Tate branded; they are thought to provide models for possible future ventures.
