ARTSblog

Taboo Cards

Some artists, if you mention the word “business” at all, they recoil, but let us play a field-wide game of Taboo, and have a brainstorm discussion about the future of the arts sans these words or any derivation of them:  “innovation” and “business models.”

Could the private sector keep itself from using all the jargon accumulated in business school and really talk about what they want to accomplish and how to do it?

So often, organizations of all kinds create job descriptions or individuals write their resumes hiding behind platitudes of these perceived “good” business skills without being specific. That or trying to identify a new direction for one’s organization can feel like when we were little kids and played “office” or “school” or “house.” You weren’t exactly sure what you were supposed to be doing, but you emulated what you saw and played out whatever notions you had about working in such a place.  Read the rest of this entry »

Adam Huttler

[During last week’s Private Sector Blog Salon], fellow guest blogger Diane Ragsdale got me thinking after she posed the question: what would have happened if the nonprofit regional theatre movement had embraced (and had the opportunity to embrace) the L3C instead of the 501(c)(3) corporation?

This is an interesting and subtly radical thought experiment. Diane is effectively proposing that we rewind history and build what we now think of as the nonprofit arts sector as a socially-conscious for-profit arts sector instead. Has the horse left the barn or is it really possible to reinvent ourselves at such a fundamental level?

In truth, I’ve always believed that the alleged conflict between artistic purity and commercial success was largely overblown. If anything it’s a healthy tension, not an insurmountable chasm. Certainly there are arts organizations whose missions are to push aesthetic envelopes and operate at the leading edge of craft and artistry. They will always need philanthropic subsidy to survive, and so they should probably be 501(c)(3)s regardless. But these brave, unpopular pioneers are the exception, not the rule. Most of us operate in the vast middle ground between Broadway and The Wooster Group.  Read the rest of this entry »

Adam Huttler

The L3C (low-profit limited liability company) construct has been getting a ton of virtual ink lately. As a way of establishing my dubious credentials, I’ll note that I was among the first in our field to note the arrival of the L3C, and I’ve written and debated about it quite a bit since then. Fractured Atlas formed an L3C subsidiary for our insurance program back in 2008.

All of that is just to establish why I’m having trouble thinking of something new and inspiring to say about the L3C. I suppose it also explains why I’m interviewed on the subject frequently enough that I can confidently lump the questioners into two categories: (1) big thinkers – often grad students or consultants – who see tremendous potential in the L3C but have only a vague concept of its real legal and financial contours, and (2) jaded skeptics – often professors or attorneys – who know just enough about the L3C to have serious doubts about its applicability to the arts.  Read the rest of this entry »

Margy Waller

Before we start developing the public policy campaign to maintain status quo for charitable status and deductions, let’s make sure we know why we are doing it – and that it’s really a good fit for us.

Reviewing all the blog posts in this Salon in one read, I’m struck by the number of writers pointing out limitations of the special status that makes donors to nonprofit arts organizations eligible for a tax deduction.

Patricia Martin encourages us to rethink the slavish devotion to 501(c)(3) status if we want our organizational structure to keep up with the “rising generation [that] has already changed how it consumes culture and interacts with institutions.”  Read the rest of this entry »

Helena Fruscio

In The Arts & New Philanthropy, James Underclofer’s states that “philanthropy/investor sites such as Kickstarter are revolutionizing giving.”

Delegation of an individual’s dollars is less tethered to incorporation status, and more to the donor/investor/client’s “personal motivations” – as Underclofer noted in his students.

So how do both for-profit and nonprofits adjust to this new climate?

They must change the way they communicate their message and engage potential donor/investor/clients.

So what is that change that equals success in this shifting environment?  Read the rest of this entry »

While the official Private Sector Blog Salon concluded on Friday (5/20), the conversations and debates were so lively that we will continue to add more posts throughout the week here on ARTSblog.

Some of our dedicated bloggers from last week were willing to respond and add to the conversation beyond the week, so who are we to stop them?

In addition to our regular content, you’ll see new blogs discussing new business models, fundraising, and other subjects from the Salon posted almost everyday.

Feel free to continue the dialogue in the comment section of the new posts or go back and read the old ones.  Read the rest of this entry »

Valerie Beaman

What an astonishingly great group of bloggers and commentators!

Thanks to bloggers Rebecca Novick, Colin Tweedy, James Undercofler, Marc Vogl, Margy Waller, Claudia Bach, Adam Huttler, Janet Brown, Christy Bolingbroke, Helena Fruscio, Scott Provancher, Paul Miller, Kate Marquez, Patricia Martin, Diane Ragsdale, Jeanie Duncan, and Maud Lyon for writing such thoughtful and provocative pieces!

Thanks are also due to Andrew Taylor and The Artful Manager, and all the other commentators, Tweeters, and Facebook friends.

It seems to me that the focus on new entities actually represents growing pains; a wake-up call to re-examine what you really want to accomplish – not what your funders want, not the areas your business entity mandates.  Read the rest of this entry »

Claudia Bach

I was at a civic leadership gathering yesterday that focused on issues of community. A couple of things mentioned got me trying to connect ideas I’ve not thought of as being interconnected and trying to imagine how they might play out in support of smaller arts organizations. Since these are just percolating ideas – or really questions – bear with me.

Cooperatives, as a business model, have been around for over 150 years. Here in the Northwest we have a nurtured a number of interesting cooperatives including the hugely successful REI, Group Health (one of the first health care cooperatives), as well as a strong array of food co-ops, some apartments that use that structure, and a smattering of artists’ co-ops including the stalwart Soil Gallery.  Read the rest of this entry »

Margy Waller

We’ve all been reading about suggestions for policies to address federal budget issues – including possible big changes to the tax deductibility of contributions to nonprofits. Scary, right? Opportunity, maybe!

Setting aside for a moment the structural and legal issues regarding tax status, nonprofit arts and culture organizations are struggling on the fundraising playing field. Plus, arts organizations are challenged by public perception about the role of arts and charities in community.

We know that when people think about the arts, they’re likely to think first of entertainment. That’s cool – when we are looking for consumers and trying to sell tickets or memberships.

But, when we’re seeking contributions for day-to-day operations – this perception makes our work a lot harder.  Read the rest of this entry »

Jeanie Duncan

(Note: This post is a continuation of Part 1 and Part 2 posted earlier this week)

Implementation: A Strategy-Focused Business Model

Our closest stakeholders and constituents had been a part of the research and discovery process with us along the way, participating in information gathering and report-out sessions. While we had been together through this process, changes were going to be significant, and nothing makes reality more sobering than implementation. The change, while it wasn’t easy, was supported by the voice of our community-at-large.

We rolled out our new plan and its supporting tactics beginning in spring 2009. Most notably, we:

•    Recruited new leadership reflecting the diversity of our community.
•    Formed teams to work on launching advisory groups for Hispanic/Latino, African American, and young adults with the goal of building relationships and engaging people in these sectors.  Read the rest of this entry »

Paul Miller

Per Helena Fruscio’s post from earlier this week (The Creative Economy: Not-Sole-For-Profits-Proprietors) in which she says, “Our power is in numbers and in speaking with one voice” – I wholeheartedly agree!

In 2008, I was in Washington, DC, on a team that consisted of a dancer, a lawyer, a museum executive director (and myself as clown/circus producer) representing the state of Illinois for Arts Advocacy Day. After a day of lobbyist training, I had the chance to sit with three Republican congressmen. Congressman (now Senator) Kirk started the conversation like this – “There are 300 million people in the United States and 110 million taxpayers but we have 8 million still unemployed (as of 3/2008).”  Read the rest of this entry »

Marc Vogl

Does anyone play fantasy sports?

I was in a fantasy basketball league last year. I did terribly – came in last place, a very distant last place.

I got into it partly because I have some interest in following the NBA, mostly because a friend of mine needed a 12th person for his league. But there was a little part of me that decided to try it because I thought I could learn something about how using data can drive decision making and, hopefully, result in success.

For those that haven’t played fantasy sports, it’s a game played with data (or so I thought). The fantasy is that one pretends to be the general manager for a team – hiring and firing players throughout the course of a season. One gains points and competes with others in the fantasy league by selecting real-live players and adding up the various statistics they collect in a week of real-live playing. So, for example (and I promise that I will bring this back to the business of the arts topic that I was asked to write about), if I have Lebron James on my team (you’ve heard of Lebron, right?) I collect points not just for every basket he makes, but for every assist, every steal, every three-pointer, blocked shot, and free throw.  Read the rest of this entry »

Diane Ragsdale

People have been talking about the blurring line between the commercial and nonprofit arts sectors (and related mission/market tradeoffs) for decades. Some see this line blurring and become concerned; others seem to see it as a natural progression and even a step forward for nonprofits. I’d venture to say that Patron Technology CEO Eugene Carr is in the second camp, based on his recent blog post, “What’s the Secret Sauce Today?”

Here are a few excerpts from his post:

“… more and more, Artistic Directors need to realize they must balance audience needs with the financial needs and mission of the organization, and in these economic times, the mission may have to bend a bit.

Frankly, it’s always a balancing act, but if you’re too mission-oriented, you can end up with something like what we’re witnessing at the City Opera, which essentially abandoned any vestige of its old mission … and instead decided on a radically new approach with nothing but daring new operas.  Read the rest of this entry »

Jeanie Duncan

(Continued from Part 1 posted earlier this week)

Process: Constituency Research Yields Insight

As we surveyed our situation, we knew our approach could not be a typical strategic planning process. Board and staff discussion charted an outside-in strategy for data gathering. Our selected consultant was a branding, PR, and market research firm whose representatives reminded us from the beginning that “it doesn’t matter what you think. What matters is what your customer – the community – thinks.”

With the potential for change to be significant, it was essential that the United Arts Council of Greensboro (UAC) communicate openly, early, and often to the constituents who relied on our funding, as well as their core audiences and supporters. For some agencies,our investment comprised as much as 20 percent of their contributed revenue. Regardless of the percentage, the resource was critical; we wanted to mitigate negative impact while giving historically funded agencies ample lead time for planning and preparation.  Read the rest of this entry »

Scott Provancher

Why is it so rare to find successful examples of innovation and entrepreneurism in the arts industry in America? The arts industry, after all, is filled with creative individuals who are working in a country that idolizes the lone entrepreneur business leader (Steve Jobs, Bill Gates, Mark Zuckerberg, etc…).

After watching this video about Google Art Project and realizing disruptive innovations that could change the way we experience art are not coming from the arts industry, but from for-profit technology companies, I began searching for answers.

Though we often like to believe innovative ideas that turn into successful businesses or products happen from a solitary “eureka” in one person’s head, the fact is that they usually don’t. Organizations and individuals who successfully produce game-changing innovations have very disciplined approaches to nurture creative ideas, assemble the right minds to develop them, put the necessary financial resources behind them, and most importantly are comfortable with taking risks.  Read the rest of this entry »