FEASIBILITY_STUDY , item 14. PDF 1 MB - Meetings, agendas and ...

A feasibility study prepared for the Black Box TrustNovember 2011Advantages cont…Disadvantages cont…Potentially objections from localbusinesses in becomingcompetitionLose financial backing andsupport of the public sectorAlthough this option would meet the majority of key objectives to the continued operation of theBlack Box, unless a potential private partner is identified, it is unlikely that the venue would becapable of becoming an independent/commercial venue.Its operation with an ongoing net deficit and reliance on public sector funding to date would alsolimit the opportunity to attract a private investor or obtain a loan from the bank to run as a standalone business.In addition, operating as an independent/commercial venue would conflict with the Black Box‟smission statement as a not-for-profit arts venue. Applying for a premises licence, extending thehours it could serve alcohol to customers would also raise objections from the local businesscommunity.Therefore, we do not consider this to be a viable option for the continued existence of the BlackBox and will not be carrying it forward for consideration.6.5.4 Option 4 – Broaden support from public sector and other sourcesThis option would involve the Black Box continuing to operate with support through public sectorand/or other funding. It assumes that the venue will apply for funding from a wider range ofsources other than the providers to date i.e. in addition to its applications for funding to theACNI, BCC and DSD, to broaden its funding base.The advantages and disadvantages of this option are presented in Table 6.3 below.Table 6.2: Advantages and disadvantages of Option 4AdvantagesAttract new monies and investmentfrom relevant organisations such asthe Paul Hamlyn Foundation,Heritage Lottery Fund, NITBIncrease the probability of attainingfundingBecome less dependent ontraditional sources of fundingDisadvantagesAdditional time and resourcerequired to prepare applicationson top of existing applications totraditional providersMay not meet some of previousfunders‟ new criteria and thecriteria of potential fundersCompetition for funding is highand available monies arelimited48