"What happens if we don't get our grant?" It's the question that keeps CEOs and staff members of small arts organisations awake in the small hours.

Most arts organisations get by on the smell of an oily rag, and for the small-to-medium sector in particular, annual or triennial funding for operational expenses such as staff is the difference between being a voluntary organisation surviving on the goodwill of friends and family, and a going concern able to hire staff and plan for the future.