As Corporate Giving Bounces Back, Six Things Nonprofits Need to Know

Posted by Judy Belk On December - 13 - 2013
Judy Belk

Judy Belk

After years of recession-battered budgets, nonprofits finally are getting good news: U.S. charitable donations appear to be rebounding. Corporate giving, in particular, increased a cumulative 14.7% since 2010, according to the Giving USA Foundation. The median of total giving by companies jumped 23% last year and is almost back to pre-recession levels.

Many, but not all, nonprofits are getting some lift from that rising tide. A survey by the Nonprofit Research Collaborative found that 42% of nonprofits said they received more corporate funding in 2012 than in 2011.

Converging trends, however, are shaping how such funds will be allocated in the future. Most notable is pressure from customers and employees for companies to become better corporate citizens. At the same time, business-oriented thinking is coming to bear on philanthropy, including “impact investment” approaches, leveraging non-cash assets, more strategic planning and a desire to align charity and corporate missions.

These changes are spawning new expectations for nonprofits – but also revealing new resources for them to tap. Here are six trends to understand to successfully engage corporate donors. Read the rest of this entry »

As Charity Goes, So Goes the Arts?

Posted by Roland Kushner On December - 12 - 2013
Roland Kushner

Roland Kushner

I was happy to see the editorial “Handsome is as handsome gives” from long-time musician and arts advocate Arthur C. Brooks in the Wall Street Journal on Nov 25. Brooks, also an accomplished social scientist and president of American Enterprise Institute, cites studies, cites studies showing how increased generosity is good for one’s health, well-being, and attractiveness.  He cheerfully encourages readers to give generously so they might reap those rewards for themselves.

It turns out that Brooks missed one other benefit of increased generosity: it’s good for the artistic instinct and the progress of the arts.  There is a strong connection between the vitality of the arts and private support of all charitable causes that has persisted over many years.  Here’s some interesting data about that connection.

Last August, Americans for the Arts released the 2013 National Arts Index report, our fourth annual measure of vitality of arts and culture in the U.S.  The report spanned 2000 through 2011.  Co-author Randy Cohen and I calculate the Index score from 78 indicators of attendance, participation, consumption, investment, returns, volunteering, performances, compositions, imports and exports, government funding at all levels, numbers of artists and more.  The Index shows how dynamic those years were for the arts.

And not only the arts … we experienced recessions, booms, crises, recoveries, wars, political changes, technological advances, demographic shifts, new social movements, and of course, changes in the arts.  Intuition and experience suggest how that some of those dynamic forces – mostly macroeconomic – are positively linked to the arts: GDP, employment, stock market, population, and income. Some behavior and attitude patterns are arts-friendly: charitable giving, consumer confidence, leisure participation.  Each of these forces (and others) has its own record of growth and decline in recent years. How closely do the arts track these other forces? Read the rest of this entry »

Giving: Arts and Culture

Posted by Tim McClimon On December - 9 - 2013
Tim McClimon

Tim McClimon

There are lots of good reasons to support arts and culture organizations in your community: encouraging creativity, fostering innovation, enhancing the quality of life, beautifying our parks and public spaces, educating young people and audiences, and just for pure enjoyment and personal fulfillment – to name a few. I mean, who among us hasn’t enjoyed listening to great music in a concert hall, watching spectacular dance on stage, engaging with provocative actors in a theater or visiting a world-class art museum?

But another reason to support the arts is the economic impact that arts and culture organizations have in their local communities and the jobs they create.

According to a recent study of 182 communities by Americans for the Arts (Arts & Economic Prosperity IV), the nation’s nonprofit arts industry generated over $135 billion in economic activity nationally in 2010 (for-profit arts and entertainment activity was excluded from this study). $61 billion of this activity was generated directly by the country’s nonprofit arts and culture organizations and $74 billion was generated in event-related expenditures by their audience members.

This economic activity supports over 4 million full-time jobs and it generates over $22 billion in revenue for local, state and federal governments every year – a yield well beyond the $4 billion that is allocated to support arts organizations by governments annually.

According to the report, arts and culture organizations are resilient and entrepreneurial businesses. They employ people locally, purchase goods and services within their communities, and promote their communities as tourist destinations and great places to live.

Additionally, when patrons attend events, they often pay for parking or transportation, eat at local restaurants, shop in retail stores, have dessert on the way home, pay a babysitter or stay in local hotels. Based on over 150,000 audience surveys, the typical arts attendee spends almost $25 per person, per event, beyond the cost of admission – and this number is much greater in metropolitan areas. Read the rest of this entry »

Two Takes on the Business Case for Strategic Corporate Philanthropy

Posted by Eileen Cunniffe On October - 15 - 2013
Eileen Cunniffe

Eileen Cunniffe

Two recent articles make the case for strategic corporate philanthropy. And while the authors come at the topic from different angles, they agree that when corporate foundation or corporate social responsibility leaders align programs with causes that matter to their businesses, the investments yield many types of dividends.

Christine Park, president of the New York Life Foundation, offers the example of the impact her organization has had in addressing childhood bereavement. She notes that while as many as one in seven Americans loses a parent or sibling before age 20, grieving children are a surprisingly overlooked group. Since New York Life deals with families in times of grief, this cause resonates with people throughout the organization. As she explains, “…we practice advocacy with a lower-case ‘a’—with a focus on raising awareness, education, and public concern for issues where there is a clear and compelling need and little rational dispute as to the merits of the issue.”

Since adopting the “under-attended-to issue” of grieving children, the foundation has been able not only to invest resources (more than $13 million since 2007) in supporting grieving children, they’ve also been able to shine a bright spotlight on the topic and shape the national conversation about the needs of these children. They’ve forged strong partnerships with a number of leading nonprofits in the field, such as the Moyer Foundation and the National Center for School Crisis and Bereavement, and fostered alliances across nonprofits in this category. Read the rest of this entry »

Catherine Brandt

Catherine Brandt

The New York Times recently published an opinion piece by Peter Singer asserting that some charitable causes are more important and, consequently, more worthy of philanthropic dollars. In the piece, Singer singles out arts, culture, and heritage institutions as less deserving. Both Laura Zucker, executive director of L.A. County Arts Commission, and Janet Brown, President and CEO of Grantmakers in the Arts, submitted rebuttals to The New York Times. As the paper has yet to publish them, we thought we would share them with you here instead:

 

To the Editor

Re: “Good Charity, Bad Charity” in the August 11 Sunday Review section, Mr. Singer assumes that charitable giving is a zero sum game. It isn’t. People give for a wide variety of reasons, including personal passions and social connectivity, and can almost always be motivated to give more when presented with compelling opportunities to make a difference. Making that difference can be both about mitigating the evils of the world and building on our assets, particularly when the effects of either are almost never as easy to quantify as the example Mr. Singer uses. How would the net benefits of his giving equation change if the charity working to reduce the incidence of trachoma was ineffectual at reaching the people who needed its services most and the museum building its new wing instituted a local hiring program that reduced the unemployment rate and enabled more people to purchase health insurance?

~Laura Zucker, Executive Director; L.A. County Arts Commission

 

Either-Or is Harmful to Charities and Society

Peter Singer’s Sunday, August 11 NY Times article entitled “Good Charity, Bad Charity” was a shocker. One would expect something a bit more far-reaching and not quite so simplistic from a bioethicist. American philanthropy, individual to institutional, reflects support for charities that represent the entire human spectrum. People are multitasking in charitable giving, just as they have multiple passions in their lives. It is what you would expect from a diverse country with a rich history of charitable giving.

Pitting charitable sectors against each other is an unseemly answer to the betterment of a society that, hopefully, strives to both eradicate suffering and promote an informed and satisfied citizenry. As President of Grantmakers in the Arts, I was appalled by Mr. Singer’s use of a museum as an example of “bad charity.” What kind of society or civilization would not value its history enough to share it with future generations? That history, whether told through art, culture, medicine or politics, is the journey of humankind. Interestingly, a primary value of the arts and humanities is empathy, understanding and pronouncing the pain of others in order to improve our condition as human beings. The willingness to preserve artistic and cultural treasures and interpret events past and present is a valuable part of any society that deems itself caring about its world citizens. Read the rest of this entry »

At Last, a Ray of Hope (from The pARTnership Movement)

Posted by Mark Shugoll On June - 20 - 2013

Mark Shugoll

Mark Shugoll

There is no doubt that the arts have faced, and continue to face, challenging times. Subscription numbers trend downward, putting increased pressure on each show to be a hit and sell lots of individual tickets. Total contributed income has been decreasing at many arts organizations, or at least has not grown fast enough to match increased costs and growing artistic ambitions. Words rarely associated with arts organizations in the past are becoming increasingly common: declaring bankruptcy, downsizing, and even going out of business.

In this challenging new reality, there is at last a ray of hope. In the recently completed triennial BCA National Survey of Business Support for the Arts conducted by Americans for the Arts, corporate giving is up for the first time in nine years. From 2009 to 2012, arts giving from corporations is up 18 percent. Before we all get too excited at what sounds like a huge number, remember arts giving is up 18 percent over three years, an average of a more modest 6 percent per year. And arts giving has only recovered to 2006 levels (although the survey does not adjust giving for inflation).

But the upward progress cannot be denied on almost any measure in the survey: the percent of businesses contributing to any philanthropic cause is up from 52 percent in 2009 to 64 percent today; the percent of all businesses giving to the arts is up from 28 percent in 2009 to 41 percent today; the percent the arts receive of total philanthropic contributions is up from 15 percent to 19 percent; the median contribution to the arts is the largest it has been in 6 years, up from $750 in 2009 to $1,000 today. And there is hope that these trends will continue as slightly more businesses today say they expect their total philanthropic giving, as well as their arts giving, to increase rather than decrease in 2013. Read the rest of this entry »

Claudia Jacobs

Claudia Jacobs

When I was a college student in the 60s we thought ourselves intellectual, political and even somewhat evolved. A widely acknowledged putdown of college athletes oft heard was that their course load included Basket Weaving 101. That statement was not only insensitive to athletes; it also inadvertently reflected an additional put down of the arts. And that attitude remains and is reflected in how the arts are viewed today. “In the public schools, arts are all too often the first programs to be cut and the last to be reinstated,” says James Grace, executive director of the Arts and Business Council of Greater Boston.

Today we need to update that thinking. If we are to actively enrich our communities, arts should not be a stepchild of science, technology, engineering or math (STEM). In New England alone, over 53,000 people are employed in the “creative economy” and that sector, if it were considered in the North American Industrial Classification System (NAICS), which it is not, would rank just below the data and information sector and just ahead of the truck transportation sector, according to 2009 statistics compiled by the New England Foundation for the Arts. The 18,026 New England arts organizations supply the economy with nearly $3.7 billion–so why does STEM, an acronym that excludes the arts, seem to be on the tip of everyone’s tongue? Yes, there are major reasons why the U.S. needs to be focused on producing adults with skills in these areas, but why not include the arts and go from STEM to STEAM?

Philanthropies are more and more focused on impact, grantee accountability, metrics and getting results. Sound good? Not so fast. While these evaluation measures have importance, danger could be lurking. For the metric-merry this can have the potential of giving stepchild status to the arts as the less easily measured are most vulnerable to being cut from the roster. Some argue that the increased frenzy with metrics may indeed play a role in stifling innovation. Read the rest of this entry »

Why Public Funding for the Arts Matters

Posted by Ken Busby On June - 4 - 2013
Ken Busby

Ken Busby

We’ve just completed our legislative session in Oklahoma. Two efforts to provide state funding for an Oklahoma popular culture museum and an Oklahoma Native American cultural center were deferred for consideration because of the recent devastating tornados and their aftermath. An effort to move the Oklahoma Arts Council under the jurisdiction of the Oklahoma State Department of Tourism was fortunately averted.

However, these initiatives point to a much larger issue – a general misunderstanding of the power of the arts as an agent of economic development and a disregard for the importance of the arts in education.

And Oklahoma is not alone. Most states have seen budgets for state arts agencies reduced significantly or in some cases eliminated. And I’m not really blaming legislators for this apparent lack of understanding about the importance of the arts and public funding for them. Many of our state legislators didn’t grow up with arts experiences and field trips to museums and visits to the symphony. We’ve lost almost two generations of adults who received regular arts experiences from Kindergarten through 12th Grade. Read the rest of this entry »

Bruce Whitacre

Bruce Whitacre

While corporate philanthropy has long ago shifted from community charity to strategic, carefully designed programs, a fundamental question of authenticity can undermine the soundest strategies.

If the association between a company and a cause, or the social impact of the company’s action does not resonate with consumers and other stakeholders, what is the point of the best-laid plans?

This question was examined at a recent panel convened by Barron’s and the Luxury Marketing Council, a collaborative organization of leading brands. Discussion was led by journalist and author Richard C. Morais, editor of Barron’s Penta, a quarterly magazine and website serving wealthy families. In this context, Morais addressed the inherent contradiction facing luxury brands and philanthropy — high end products are often marketed as expressions and rewards for one’s self, and this can create dissonance for philanthropic projects focused on others. Customers of these brands are also often philanthropists themselves and they are attuned to these inconsistencies.

As Page Snow, Chief Philanthropic Officer at Foundation Source, illustrated, “Individuals of wealth are approached constantly for various causes, and their BS detector becomes very finely tuned, especially at higher levels of wealth.”

Read the rest of this entry »

A Heretical View of the Arts from a Science & Math Educator

Posted by Greg Coppa On April - 29 - 2013
Greg Coppa

Greg Coppa

For decades, science and math educators have been the beneficiaries of government largesse, which has often been supplemented by corporate philanthropy. As a high school science teacher for three decades, I have often benefited from this policy along with my students and I have never questioned why it was so.

Many of my post-graduate courses were funded in whole or part by grants from the National Science Foundation. A good number of the many summer programs that I have attended were federally financed by one agency or another. Texts, videotapes, and computer software which I used were developed with government, corporation, or coalition assistance. And I have been very fortunate to have received honors and grants which have been sponsored by federal agencies and an assortment of professional societies.

I cannot warrant that every penny used to fund the variety of things just mentioned was spent wisely by the numerous government agencies and grant recipients. But overall I would have to say that from my vantage point, the taxpayers and corporate sponsors got their money’s worth.

People were trained, energized, and assisted so that they could become better teachers of science or math. Resources or teaching methods were developed which were often better than those previously utilized, or if they turned out to be worse, at least it was known for the future that that was the case. Failure was acceptable and looked at as part of the price for future success. Read the rest of this entry »

The Falcon Cannot Hear the Falconer…

Posted by Matty Wilder On April - 16 - 2013
Matty Wilder

Matty Wilder

As someone engaged in local arts philanthropy, as well as with a group of diverse leaders trying to change communities through organizing, I ask myself often what would make where I live a better place. But to think about this question in earnest means actually trying to define where exactly I live.

As a resident of Southern California for almost 13 years, I’ve pretty much bounced around to all corners of Los Angeles, though my current zip code has me in the “small town” of Santa Monica.

I do business all over the county, crossing city and municipality lines as often as I turn right on red, and the foundation where I work as program officer serves communities ranging from those just around the corner from our Santa Monica office to the Foothills of the San Gabriel Mountains to the neighborhoods around LAX to East and South Los Angeles. (For those of you not from the area, Los Angeles County is about 4,700 square miles, with 81 school districts, 88 cities, and accounts for 27% of California’s population).

So while the massive redevelopment of our downtown area over the last decade may not directly affect my quiet residential neighborhood on the west side, I still want to participate in understanding how it’s going to shape a community and the local economy; though I may not be able to vote for the next mayor of Los Angeles, which frustrates me endlessly—but that’s for another blog post—I still care about and can have a voice in the outcome by learning about the candidates and engaging them on issues I care about.  Read the rest of this entry »

Susan Mendenhall

Susan Mendenhall

The terms “triple-win” and “triple bottom line” are tossed around in nonprofit publications fairly regularly, especially when it comes to espousing the benefits of corporate philanthropy and corporate social responsibility.

At times, it can seem like forging triple-win partnerships are like cranking the philanthropic slot machine hoping for a three liner of cherries. A win for the nonprofit? Ding! A win for the corporate donor? Ding! A win for the community? Ding!

But authentic corporate-nonprofit partnerships that have real community impact are no simple gamble. They’re built on a foundation of mutual trust and respect, and a shared commitment to serving real people.

A great example of a successful triple-win partnership is the Nonprofit Arts Internship Initiative. With support from the Lincoln Financial Foundation, Arts United has placed more than 70 paid interns at northeast Indiana’s largest nonprofit arts organizations since 2007. Arts organizations gain assistance and expertise from local college students while providing interns with beneficial career experience in arts administration and nonprofit management. Read the rest of this entry »

Crossing Cultures: A New Necessity? (an EALS Post)

Posted by Joshua Midgett On March - 8 - 2013
Joshua Midgett

Joshua Midgett

The expansion of marketplaces from local to global is rapid. As technology continues to evolve and the world ‘shrinks’, cross-cultural exchange and appreciation are vital to the success of an individual in any field. It is especially significant in the field of the arts, where so often culture finds its voice.

In a field where planning is already a difficult task, it is significant to discuss this expansion of perspective. The international aspects of audience, cooperation, cultural differences, and philanthropy add an extra piece or pieces to the organizational puzzle. This new challenge has not gone unnoticed by the arts management community.

Here at American University, a new Certificate in International Arts Management has been recently unveiled. Nearby, the Kennedy Center has been working with and training international arts managers since 2008.

Programs across the country are beginning take notice, and if entire degrees aren’t dedicated to the topic, many classes will be. While this field is as young as the technology that is accelerating its development, there is little doubt that it will soon be an integral part of any arts management training.  Read the rest of this entry »

But I Hate Asking for Money… (An EALS Post)

Posted by Steven Dawson On March - 1 - 2013
Steven Dawson

Steven Dawson

Regardless of the organizations mission, values, programs, etc., what is the ONE common factor that is needed to execute an organization’s purpose?

Money!

As much as we dislike connecting our important work to the dollar, the simple fact is that without it, we cannot pay our staffs, purchase materials, and pay the electric bills…and thus provide our services.

So there we have it, we must have funds to fulfill our missions. However, unless you are the lucky few, earned income doesn’t even come close to covering your budget. So to take the statement even further; we must have CONTRIBUTED funds to fulfill our missions.

Now with the sequestration set to go into effect, the National Endowment for the Arts (NEA) budget will be cut by 5%, or $7.3 million, and grants will decrease. (But let’s be honest, NEA funds have really just become a stamp of approval…and important stamp, that is…rather than actual difference-making funds).

Foundations are changing the focus of how and what they fund. And corporate philanthropy, while rebounding, will not cover the balance. So, lets take that earlier statement even deeper. We must have INDIVIDUAL contributed funds to fulfill our missions.

This can be a problem, though, because this all important aspect of nonprofit management is most likely the most uncomfortable aspect of nonprofit management. It is just human nature to avoid asking for money, even from people you know.  Read the rest of this entry »

Creative Partnerships: Strategies for Collaboration (from The pARTnership Movement)

Posted by Shannon Litzenberger On February - 7 - 2013
Shannon Litzenberger

Shannon Litzenberger

A new generation of arts development calls for new conversations about how to engage stakeholders and cultivate resources to support artistic activity. It’s clear that as public investment dwindles relative to industry growth, the future success of arts enterprises will include seeking new creative partners in the private sector by building relationships based on shared values and mutual goals.

Exploring national and international models of partnership, collaboration, and investment across the arts and business sectors formed the basis of a day-long symposium held late last year in Toronto.

Creative Partnerships: Connecting Business and the Arts brought together 100 leaders from across the arts, business, and public sectors to consider how we can build new capacities within our respective industries through creative collaboration. Hosted jointly by the Metcalf Foundation, Business for the Arts, the ASO Learning Network, the Manulife Centre, and the Canada Council for the Arts, Creative Partnership brought into focus a host of examples and opportunities aimed at increasing private sector engagement in the arts.

One of the day’s early highlights was a report on the performance of Canada’s new and quickly expanding program artsVest™. A flagship initiative at Business for the Arts, artsVest aims to help broker new relationships between arts organizations and business sponsors. With invested funds from the federal government, as well as participating provincial and city partners, the national initiative provides matching grants, free sponsorship training workshops, as well as community building and networking events that catalyze cross-sector partnerships. Read the rest of this entry »

ARTSblog holds week-long Blog Salons, a series of posts by guest bloggers, that focus on an overarching theme within a core area of Americans for the Arts' work. Here are links to the most recent Salons:

Arts Education

Early Arts Education

Common Core Standards

Quality, Engagement & Partnerships

Emerging Leaders

Taking Communities to the Next Level

New Methods & Models

Public Art

Best Practices

Evaluation

Arts Marketing

Audience Engagement

Winning Audiences

Powered by Community

Animating Democracy

Arts & the Military

Scaling Up Programs & Projects

Social Impact & Evaluation

Humor & Social Change

Private Sector Initatives

Arts & Business Partnerships

Business Models in the Arts

Local Arts Agencies

Cultural Districts

Economic Development

Trends, Collaborations & Audiences

Art in Rural Communities

Alec Baldwin and Nigel Lythgoe talk about the state of the arts in America at Arts Advocacy Day 2012. The acclaimed actor and famed producer discuss arts education and what inspires them.