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[Art] helps me understand the times I’m living in. It helps me see other perspectives. It makes me feel less alone. It makes me feel more human.
It connects me more to the rest of humanity.

The Arts Debate, Arts Council England 2007

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Ancillary income

What does this mean?

Money earned by an organisation through an activity that lies outside its normal core activity and purpose.

Hence this can include income from catering, merchandising, refreshments, ice creams and confectionery, and hires of a facility for a purpose other than the sorts of events that are included in its core programme (e.g.conferences).

How did we get this definition?

There are times when it is desirable for arts organisations to document and report on the total income they generate from their activities. But on other occasions people want to categorise income according to what sorts of activity led to the related income generation. The first of these considerations entails having comprehensive coverage (and not omitting any sources of income). The second is about understanding the contribution made by each of the components that – when added together – make up total income.

This makes it prudent to break down the types of income stream involved. One way of doing this is according to how close each income-generating activity is to an organisation’s core mission and purpose.

Hence core income (or core turnover) is any money that has been earned by, or generated to support, an organisation’s core purpose (i.e. its whole reason for existing). So the core purpose of a gallery is likely to relate to something like ‘providing exhibitions of the visual arts’. The core purpose of a dance company could be something along the lines of ‘making and presenting dance performances’. And the core purpose of an artists’ workshop collective could be ‘providing working spaces for artists’.

In contrast to this, ancillary income is any money that is generated or received through activities that do not essentially relate to an organisation’s core purpose. For instance it would be wise to treat a gallery’s café receipts, confectionery sales in a theatre and stationery sales in a concert hall as being income that is ancillary to the core purpose.