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Arts Council England has published the criteria it uses to make decisions about which organisations to fund regularly for the first time.
The body said it was aiming to give arts organisations "greater clarity and transparency" about the process involved. ACE provides roughly £350m to regularly funded organisations each year.
The process is divided into determining two sets of criteria: that the company is "a good, well-managed organisation" and that the organisation "fits into the overall arts infrastructure that the Arts Council is seeking to support".
ACE added that "excellent and innovative programmes of work, high quality public engagement and effective governance and management" was also of importance.
Paul Blaker, director of programmes for ACE, said: ”Publishing these criteria forms part of our commitment to becoming more open and transparent about our decision making processes.
"The criteria are not used as a formula for counting up ‘scores’. They provide a framework against which the Arts Council can make informed judgements.”
The Council stressed that those organisations which receive funding should "represent a diverse range of artforms across the country", while helping ACE "achieve its mission of great art for everyone".
The document also makes clear the requirements and responsibilities an organisation must be willing and able to meet in order to become an RFO.
For more information on the Arts Council's decision-making process, go to http://www.artscouncil.org.uk/publication_archive/criteria-arts-council-... target="_blank">here