Pros & Cons of Private and Public Financing

Public Funding is money that is generated by the government to provide goods and services to the general public.  The money comes from government departments, local authorities and non departmental public bodies who operate grant programmes using monies raised through taxation.  For the performing arts industry, the DCMS (Department for Culture, Media & Sport), is responsible for the promotion of arts across the UK.  Funding is distributed to various organisations from money collected from the Government and the National Lottery. 

Private Funding is funds made available without government involvement, support or guarantee. The funds are made with the means of support through one or more companies, and/or by money raising events.

Pros of Public Funding

• Sometimes accompanied by free technical assistance - they may provide workshops, seminars etc
• Have more money and more likely to award large grants/contracts
• More likely to pay all project costs
• Easier to find information about
• Application processes and deadlines are straightforward and firm
• Possibilities of renewal is made known

Pros of Private Funding

• More flexible in responding to unique needs and circumstances
• Less restrictions so more willing to source start-ups or experimental funds
• Wide range in size of available grants - some large, some strictly for small projects
• Fewer applicants in most cases
• Can generally be more informal and willing to help with the proposal process

Cons of Public Funding

• There can be a disapproval which hinders the project from going forward
• The amount given can affect creativity and diversity of the project to become stagnate
• They have to abide by the guidelines in order to get the amount they would like
• There can be too much dependency on the public funding - the outcome of their decision can either make or break
• Monitoring of programme activities to make sure the money is not misused.
• While straightforward, it is a long process of applying via administrative and compliance procedures
• A biased choice of applicants on who they'll give the money to
• Political trends can affect security of some programmes
• Availability of funds can rapidly change

Cons of Private Funding

• Grant size usually much smaller
• May not have a clear clarification about reasons for rejection
• Less likely to cover all project costs and indirect costs
• Research has to be done in your own time which can be time consuming
• Continual support can be difficult to predict and can be withdrawn at any moment. 

While both fundings can be beneficial and also have their cons, I am still unsure of which is better than the other to help finance a show.  I personally feel it is a matter of experience, and personal preference because someone might have a better experience with private, rather than public and visa versa.  If I did have a choice, I would try and go to a private funder first, as I feel that there are more restrictions with public and can diminish the creative aspects of a show.  On the sidelines I can also raise money through events to continually support the show just in case the private investor has to withdraw due to unfortunate circumstances that may arise.  Nothing is for certain but it's reassuring to know that there is help to get you off the ground.