Irish arts minister Jimmy Deenihan has announced the launch of a new initiative designed to increase philanthropic sponsorship and endowment funding of the country's arts sector.

The new Philanthropy Leverage Initiative has been established with EUR230,000 (£184,000) worth of funding and will be managed by the Department of Arts, Heritage and the Gaeltacht.

It is hoped the scheme - operating on a pilot basis and to be reviewed at the end of the year - will generate total additional funding worth EUR805,000 (£643,000) for the sector in 2012.

Deenihan said: "Philanthropy for arts and culture is underdeveloped in Ireland compared to other sectors and compared to other countries, particularly the United States.

"The philanthropy scheme aims to incentivise private fundraising and offers more taxpayer funding to those organisations that can raise the most support from other sources."

In late 2010, UK culture secretary Jeremy Hunt earmarked £80m for match funded schemes under government plans to increase philanthropic donations to arts groups.

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