Exploring Financial Resilience through Growth in the Heritage Sector
As part of the Heritage Compass Legacy programme, Cause4 are working in partnership with MyCake (financial benchmarking specialists), to give the heritage sector in England access to a new Financial Benchmarking Dashboard, which provides insights and guidance to help the sector become better informed when it comes to financial resilience.
As part of this work, we are also producing a series of articles to spotlight best practice and highlight how data can inform decision making and strategic thinking for the heritage sector today.
In this first article of the series, we’re exploring financial resilience through growth in the heritage sector.
Despite the complex challenges that the sector has faced over the last four years, from the Covid-19 Pandemic to the Cost-of-Living Crisis, and Local Authority Funding Cuts to Trusts and Foundations winding down, some organisations have seen sustained financial growth, going against the grain and coming out on top when it comes to income generation.
So, who are these organisations and what can the rest of the heritage sector learn from their success?
What does the data say?
Using the Heritage Compass dashboard, we’ve analysed the turnover of Heritage Compass participants over a four-year period, identifying both growth and reductions in income. We have also categorised the changes in income profiles by turnover band from 2019, allowing us to see which organisations have generated income growth and which have seen a reduction.
The datashows that the Heritage Compass participants who achieved the biggest growth are those whose income was below £25,000 in 2019. Organisations of this size had a median turnover in 2019 of £16,508 and, by 2022, this figure had grown to £37,740 (129% growth over the period).
To understand this significant increase, this article will examine the financial development and growth strategies of Invisible Palace, Ledbury Places Ltd, and Victor Batte Lay Foundation – three Heritage Compass organisations whose income was less than £25,000 in 2019 and experienced significant income increases up until 2023.
Throughout this piece, we will explore how diverse programming, community engagement, strategic funding applications, and innovative use of heritage spaces have allowed these organisations to achieve sustainable growth.
By analysing their financial trajectories and approaches to overcoming common challenges in the heritage sector, we hope to provide insights into successful financial strategies and highlight key risks that organisations may need to address for future stability.
Case studies
Invisible Palace
Invisible Palace, based in South East London, focuses on creating community-driven activities that promote shared interests, heritage, and practical engagement. The organisation works across the boroughs of Bromley, Croydon, Lambeth, Southwark, and Lewisham.
Growth Profile:
Invisible Palace’s income increased significantly from £15,750 in 2019 to £68,981 in 2023.
- 2020-2021 (£40,969 income): Income nearly doubled from the prior year due to pandemic relief funds and support from the National Lottery Community Fund. These funds supported adapting programmes during lockdowns, including the Sculptures of Crystal Palace Park Project, which moved some activities online to keep participants engaged.
- 2021-2022 (£61,369 income): This increase was primarily driven by a National Lottery Heritage Fund grant, which supported heritage activities like co-creating creative responses to the park’s statues. The City Bridge Trust also funded community gardening, including the maintenance of the Vicar’s Oak scheme along the park’s edge, contributing to environmental preservation and social interaction.
- 2022-2023 (£68,981 income): Continued growth was attributed to the National Lottery Community Fund (£15k), which supported a youth engagement programme, offering after-school sessions, taster workshops, and creative activities for young people, fostering skill-building and social interaction. This financial year also saw Invisible Palace secure funding from the Mayor of London as well as Crystal Palace Park Trust. This funding supported heritage tours to encourage community building through nature-based learning.
Key to success
By adapting its activities in line with pandemic constraints, such as moving some programmes online and focusing on small, outdoor community activities, Invisible Palace was able to maintain income and impact during this difficult time.
This work has been adapted since the Pandemic, seeing expanded partnerships with schools, children’s centres, and community groups, increasing reach and ensuring the programming meets evolving community needs.
“Gardening and working with other people has given me pleasure and helped me to connect with other gardening enthusiasts, feeling less isolated during the pandemic.”
Participant
By creating an adaptable programme that is grounded in the core mission of the organisation, Invisible Palace has been able to appeal to a range of different funders whose values of accessibility, creativity, and community engagement align strongly with the organisation.
Ledbury Places Ltd
Ledbury Places manages three key heritage buildings in Ledbury, Herefordshire: The Old Grammar School (Heritage Centre), the Barrett Browning Institute (home to the Ledbury Poetry Festival), and the Burgage Hall (an event venue).
Growth Profile:
Ledbury Places’ income increased significantly from £12,054 in 2019 to £55,816 in 2023.
- 2020-2021 (£12,000 income): Despite facing closures, a £10,000 Covid Restart Grant from the government covered fixed costs like utilities, allowing the organisation to maintain its heritage sites.
- 2021-2022 (£51,395 income): Growth during this period was driven by a grant from Herefordshire Council (£8,000) for post-Covid reopening, including support for health and safety protocols, building cleaning, and resuming public activities. It also involved support from the Architectural Heritage Fund (£15,000), which funded a feasibility study exploring the long-term sustainable use of the Barrett Browning Institute and options for expanding cultural programmes and renting out spaces for community events.
This financial year also saw the organisation bring in income from retail sales, room hires, and public donations (totalling £17,272), all of which was enhanced by new events and fundraising activities like the “Big Pottery Throwdown.”
- 2022-2023 (£55,816 income): Continued growth was attributed to the AIM New Stories New Audiences Programme (£9,480), aimed at enhancing educational programming in the Heritage Centre, creating new visitor experiences, and developing local storytelling workshops. Alongside this, Ledbury Places secured funding from Herefordshire Council and Town Fund (£5,750), supporting building renovations and energy-efficient upgrades, such as new lighting, to ensure long-term sustainability.
Key to success
By balancing grant income with revenue from its buildings (e.g. renting spaces for events and tenants) Ledbury Places was able to maintain a clear balance between operations and sustainability over this period. The retail offering also supported its fundraising efforts, with stocks of locally themed items like books and bespoke merchandise creating a meaningful connection between visitors and the site.
Individual supporters were encouraged to donate through targeted campaigns during events such as the “Big Pottery Throwdown,” and the charity also launched the Friends of Ledbury Places scheme to build a steady source of individual donations, with members offered opportunities to connect more deeply with the organisation’s work through events like exclusive tours, talks, and networking evenings.
Strong volunteer networks were crucial to the organisation’s success, as volunteers were able to help maintain exhibitions; support the fundraising event; engage visitors and participate in maintenance projects.
“Our volunteers are the backbone of our work, ensuring that our heritage buildings remain open and accessible. They are essential not only in day-to-day operations but in driving community engagement through our events and activities.”
Trustee, Ledbury Places Ltd
Ledbury Places has demonstrated a strong commitment to place-based delivery, focusing on engaging the local community and responding to their needs. This approach has been central to the charity’s success in recent years. For example:
- Heritage Centre as a Community Hub: The Heritage Centre continues to serve as a local hub for education and cultural engagement, with activities and exhibits tailored to highlight Ledbury’s rich architectural and social history. This effort fosters a sense of pride and connection among the community while attracting visitors to the area.
- Community Events and Fundraisers: Events like the “Big Pottery Throwdown” are not just fundraisers but also community-driven initiatives that bring people together and celebrate local talent. These events reinforce the charity’s role in building community cohesion and shared purpose.
- Local Partnerships: Collaborations with organisations such as Ledbury Poetry Festival and Herefordshire Council reflect a dedication to leveraging local partnerships to enhance cultural and educational offerings for the community.
By embedding itself into the local fabric of Ledbury, the organisation aligns its goals with those of the community, ensuring its work remains relevant and impactful.
Victor Batte-Lay Foundation 
The Victor Batte-Lay Foundation oversees The Minories, a gallery and historic building in Colchester, Essex.
Growth Profile:
The foundation’s income rose from £12,760 in 2019 to £80,715 in2023, showing substantial recovery and growth after a significant peak in 2021.
- 2018-2019 (£12,760 income): Operating with minimal income, the Foundation relied heavily on reserves to sustain operations and maintain its collection.
- 2019-2020 (£14,270 income): A modest increase helped the organisation continue its essential activities and maintain financial stability while seeking opportunities for growth.
- 2020-2021 (£160,923 income): This unusually high income reflects significantemergency and project-specific grants during the pandemic, including Arts Council England (£112,951) and Garfield Weston Foundation (£25,000). These funds sustained operations whilst the organisation had to close, covering immediate costs, and enabling reorganisation for future growth. While income in subsequent years appears lower, this reflects a shift from emergency funding to stabilising revenue streams.
“We could be entrepreneurial because we were fortunate to receive very positive legacy support from our community and to be a reinvented organisation starting from the ground up.”
Victor Batte-Lay Foundation Representative
- 2021-2022 (£44,954 income): This period saw targeted funding like the National Heritage Lottery Fund (£9,954) to support artist residencies, workshops, and exhibitions, strengthening The Minories’ role as acommunity arts hub. The Arts Society (£2,949) funded visual arts programmes to connect with schools and engage young people, while the Steps to Sustainability Programme (£5,000) supported strategic planning for financial and operational resilience.
- 2022-2023 (£80,715 income): The Foundation achieved steady growth through long-term tenant agreements, targeted grants, and innovative programming. By diversifying income streams and fostering community within its space, the organisation reduced costs and created a sustainable model for future operations.
Key to success
During the Pandemic, the charity leveraged support from Arts Council England and the Garfield Weston Foundation, enabling it to take a moment to pause and reflect on its future. This period of reflection helped the charity to refine its purpose, creating a new model that used its space to host events, pop-up galleries, and residencies, engaging the community and attracting new revenue streams.
By expanding public access to its art collections and collaborating with the community, the organisation has broadened its visibility, increased engagement, and boosted donations.
“We have made friends, formed alliances, and collaborated. Everything changes all the time. Be flexible. Take opportunities and make opportunities.”
Victor Batte-Lay Foundation Representative
What the Heritage Sector Can Learn from these Case Studies
The growth of these heritage organisations underscores the importance of adaptable programming, community-centred activities, strategic funding applications, and sustainable use of heritage spaces.
By balancing project-specific grants with diversified income streams and maintaining strong community ties, these organisations have achieved financial resilience and growth, offering a roadmap for others navigating similar challenges in the heritage sector.
Pause Don’t Panic
Despite facing disruptions from the pandemic, all three organisations were able to adapt by securing Covid relief funding and rethinking their programme and plans. This focus on pause over panic (something that is vital no matter the challenge) was crucial in enabling these charities to tailor their activities to the current circumstances, ultimately leading to the creation of programmes that were driven by need and impact. This approach, which they still focus on today, has allowed them to tap into new income streams and maintain operational stability.
Balance Your Grants with Self-Generated Income
While all organisations demonstrated a strong reliance on targeted grants – often tied to specific projects, restorations, or programmes —they also sought to diversify funding through fundraising events (such as the Big Pottery Throwdown), and revenue-generating activities (through retail sales, room hires, and art sales). Balancing grant dependency with self-generated income is crucial for long-term sustainability.
Engage Your Community and Volunteers
The organisations all rely on volunteers to maintain activities, run events, and manage heritage sites, creating cost-effective operations but also potential vulnerabilities if volunteer availability decreases. However, fostering strong community support has proven essential to maintaining steady income growth, whether working with volunteers or cultivating individual supporters.
Make the Most of Your Heritage Space
Efforts to find sustainable uses for historic buildings (like gallery spaces, educational centres, and event venues) contributed to these organisations’ financial resilience. Projects like Ledbury Places’ feasibility study for the Barrett Browning Institute or The Minories’ artist residencies demonstrate how effectively leveraging physical spaces can both preserve heritage and enhance financial health.
You can access the dashboard directly here and explore your own income profile against the rest of the Heritage Compass cohort.