How Arts Orgs Used Relief Funding Is Beginning To Be Examined

by:

Joe Patti

A couple weeks ago Hyperallergic had an article that was a critical of museums who had received Paycheck Protection Program (PPP) funds meant to keep people employed, but instead ended up laying off large numbers of people. They particularly noted that the Museum of Science Boston initially didn’t qualify for the program due to employing more than 500 people, but were later able to apply for funding after laying off more than 300 people.  The article also suggested that while some institutions needed the money to survive, some of those at the top ended up in almost better financial shape.

It found that out of $1.6 billion given to about 7,500 cultural institutions that qualified for PPP loans, nearly half of the money ($771 million) went to just 228 recipients. These same 288 institutions collectively laid off more than 14,400 employees, or at least 28% of their workforce.

[…]

However, AFSCME’s report found that not all museums faired that poorly during the pandemic. In fact, an analysis of 69 cultural institutions with available financial data revealed that 67% of them ended fiscal year (FY) 2020 with operating surpluses.

The Museum of Contemporary Art, Los Angeles (MOCA), which received $3.3 million in PPP loans, laid off 97 workers during the pandemic despite ending FY 2020 with a $2.3 million surplus. Nearby, the Natural History Museums of Los Angeles County ended FY 2020 with a $23.9 million operating surplus after receiving a $4.8 million PPP loan. And yet, it furloughed its 127 part-time employees from March 2020 until the end of December 2020.

Not to excuse the act of laying off people after accepting money to keep staff employed, the fact that institutions ended fiscal year 2020 with a surplus may not be indicate they profited off of layoffs. Many non-profits have a July 1 -June 30 fiscal year so if the organization was doing well from July 1, 2019 through March 2020 when the pandemic started, losses of the three months from March-June 2020 may not have moved them into a deficit. The PPP program started in April 2020 with a deadline of June 30, 2020 so organizations may not have received the funds until their 2021 fiscal year.

It has been generally acknowledged that a lot of those who applied for the PPP program didn’t have the severe financial need the program was intended to serve. Determining whether museums used funds meant to stave off layoffs to achieve better financial footing should be examined, but it isn’t clear from the information provided here. The full report can be downloaded on the AFSCME website. I haven’t downloaded the report at this time because the registration form indicates they and others may use the information to solicit and lobby me.

It will be interesting to see if a similar examination is conducted of performing arts venues which largely fall under the Shuttered Venue Operators Grant (SVOG) program, something most museums were not eligible due to the fixed seating requirement for that program.  From what I have seen, the administration of that program is still plagued with errors which they are trying to resolve for adversely effected venues, but that raises concerns that there was opportunity for inappropriately granting funds as well.

When It Comes To Work, What Is The Cost-Benefit Between Lethargy And A Sense Of Belonging

by:

Joe Patti

Dan Pink pointed to a study (warning, ad heavy page) that suggests while office interruptions may be disruptive to one’s workflow, it ultimately creates a sense of worth and belonging for people. This is something to be considered both in terms of the conversation about shifting to working remotely and digital vs. in-person arts experiences. There seems to be an indication that as social creatures, the negatives of in-person work and play interactions may be outweighed by the positive.

The study which appears in the Journal of Applied Psychology was conducted at the University of Cincinnati:

Study authors surveyed a group of 111 employees twice per day for three full weeks. Each time, employees answered questions about their experiences at the office that day. More specifically, participants recorded if they had endured any interruptions, how mentally tired they felt, their sense of belonging, and their overall job satisfaction.

Those polls led the research team to conclude that while work interruptions in a vacuum can certainly lead to feeling more lethargic and dissatisfied, the social interactions that usually accompany those intrusions produce feelings of belonging and increased job satisfaction.

“Our study revealed that by providing this avenue for social interaction with one’s colleagues, work interruptions led to a greater sense of belonging. This sense of belonging, in turn, led to higher job satisfaction,” Dr. Puranik adds.

I am not necessarily advocating for returning to the office-centric work environment of yore. I felt like this was a relatively honest discussion of the dynamics of in-person office work. It would be interesting to see a similar study conducted with a larger sample size in a year or so when remote work has a chance to exist as a norm that (hopefully) is not necessitated by the existence of a pandemic. (It didn’t escape my notice that the researchers apparently interrupted people at work twice a day to ask them how they felt being interrupted at work.)

What I fear is that people will become acclimated to a lack of social contact and not value it as much as they do now. The lethargy and dissatisfaction people may experience when interrupted shouldn’t be discounted because a sense of belonging and job satisfaction are somehow more important or valuable. People may find the working from home uninterrupted raises their energy level and satisfaction and that is a good trade off for feeling disconnected.

It also bears considering that a work environment can be created where it isn’t a zero-sum between feeling a sense of belonging and lethargy. Those options haven’t really been explored.

But ultimately people feeling that a lack of social contact is an acceptable trade off is a bad situation for museums and live performing arts events. Digital offerings can prove a good substitute and keep people engaged when they are in a situation where they can’t be present in person, but it flattens the experience. It provides too much latitude to avoid and look away from even the least inconvenient, unchallenging situations.

I have discussed how I am definitely an introvert and have no problem being alone. There are times I don’t really want to go forth from my house, but am grateful I did after having an experience.

On Sunday, after locking up the building at 9:30 pm after our visual and performing arts event, I stood outside for 90 minutes talking to a kid that had been energized by the experience. I had already worked 8 days straight and done two 12+ hour days and had to be back at work the next morning, but I realized interacting with this 22 year old was going to be valuable for both of us. Even as I was talking to him, I was thinking that had we had this conversation in a Zoom meeting, it would have been so easy to open up other websites and watch videos/read other things or just sign off from the conversation rather than devote attention to each other for 1.5 hours.

While I would certainly be comfortable in a world absent of demands for me to be personally present, I can recognize that isn’t wholly constructive in the long run.

Didn’t Happen As Envisioned, But It Came Out Much Better

by:

Joe Patti

I have often viewed my professional career as having moments where I build on general ideas and concepts from earlier positions, but adapted to suit the local community. I am always wary of being the guy who constantly says “well, when I was at X, we did…” And in this particular case, it was actually our marketing director who had an idea and took leadership of a project that closely resembled work I had done before.

In my previous position, readers may remember I had started a semi-annual visual arts fair sited in the lobby of the performing arts center I ran.  Not knowing that, our marketing director proposed something along the lines of a fringe festival model with visual arts merchants and activities sited in the lobby of our historic theatre and performances/exhibitions sited in locations around the space, including the box seats, dressing rooms, balcony stairs, green room and main stage area.

The first attempt at mounting this event happened this weekend and it turned out to be successful in ways we hadn’t envisioned.  We imagined people would bring their kids to see the art works on sales and participate in the hands on activities. While the kids were busy, the parents would stick their heads in on the TED Talk-esque sessions happening in the main room. There would be other times that people would wander the space seeing the installations and then the performance elements would start late afternoon and go into the evening.

It turned out that very few people applied to do the TED Talk type program, but instead we had so many show up who had never been to the venue before or hadn’t been in 30 years, that we ended up running a constant cycle of tours of the facility. We had held open houses in the past with the specific intent of letting people see the mysterious backstage areas and didnt have much interest, but it turn out this festival idea drew people in and left us in a position to give the tours. Now we are thinking of scrapping a lengthy TED Talk program in the future, both for lack of apparent interest but also because it would interfere with our ability to give tours.

The installations by visual artists exhibited a great use of our space and now that more people have seen how the spaces were used, we expect to receive more applications with a broader use of the particular architecture of the building in the future. Likewise, many performing artists “understood the assignment,” as it were and came up with a creative use of the space.

One of the performances pieces ended up becoming an impromptu exhibit.  On Saturday, an artist and her collaborator staged a comedic dating game were participants had to rotate between activities set up in the box seats of the theater. Some of the assignments were things like drawing a portrait of the relative that always ruins Thanksgiving. Another was to write down the worst pick up lines or insults a prospective suitor has used. Since the collection of responses was so amusing, we left everything up on Sunday as the “Graveyard of Bad Dates.” Throughout the day people stopped to read what had been written, make their own contributions, or participate in the activities. There was an 1000 piece puzzle that got closer to completion by end of day Sunday. The most amusing experience was watching people who were unfamiliar with record players discovering that the music would start wherever you dropped the needle.

One of the most gratifying outcomes, (though we shouldn’t have been surprised since we intentionally designed for it), was the diversity of artists represented. We had set up a blind jury system where we recruited visual and performing artists to both advise us on the design and execution of our overall project and to serve as a jury on the works submitted. We excised identifiable information from the applications before sending it to them to score. This was definitely a much more time and labor intensive process than an internal review would have been, but we were pleased with the results. More than half the participating creators, both performers and visual, were black and one was neurodivergent.

While we might have ended up in the same place using internal staff to choose artists, we are more confident in the outcome since we took steps to reduce the opportunity for bias. Additionally, since we were doing so many tours engaging in conversations with visitors we were able to learn that many of those who had never been in the space before/within the last 20 years, came from diverse racial, geographic and economic backgrounds.

The advice of the external jury was instrumental in shaping our application process and policies. For instance, we discarded the idea of table fees and used an honor system based percentage of sales so that artists that didn’t sell anything weren’t out the additional expense of a table fee.

Like my previous experience running an arts fair in the lobby of a performing arts center, newer artists got to see how more experienced artists operated in order to capture sales by carrying items with different price points and displaying their work to the greatest benefit. There were artists who only sold 2-3 pieces who said that was the most they had ever sold at this type of event. Others who came in from out of the area was pleased to be able to network and share tips with more locally based artists.

There was one artist who gave a painting lesson to a girl on Saturday. On Sunday the girl showed up for a second lesson and then the mother showed up and said their home needed three pieces by her daughter so she needed to take another lesson.

One of the artists was so excited and invested in the concept of the fringe festival style event, he ended up being our primary tour guide for the weekend. He is interested in learning more stories about the building, who performed there and what ghosts haunt it.

As I often write, it is generally difficult to import an idea from one community to another and have the same success. I suspect we may even have a different experience if we do the same event next year. There is a lot of groundwork we (90% credit going to the marketing director and her energy, I was more perspiration than inspiration on this project) that occurred over the last two years I haven’t mentioned that contributed to the perception of this event as successful. Even if we only retain 5% of the goodwill we generated, the event probably made the most progress in our pursuit of shifting perceptions about who our organization is for of any in the past year.

I Hope No Arts Organization Is Doing Anything Close To This

by:

Joe Patti

In writing posts I often draw on examples from commercial enterprises and other types of non-profits to provide interesting ideas or lessons that my primary audience of arts and culture professionals might use. It isn’t often that I come across something where I firmly believe no arts and cultural organization could possibly be engaging in.

But just in case, here is an example of an operation which would undoubtedly give non-profit charities a bad name and make people want to subject them to additional scrutiny.  Gene Takagi of the Non-Profit Law blog had retweeted a post by Karl Mill which I initially assumed was just going to deal with what can be a fine line between what is allowed in terms of political lobbying and action by 501 (c) (3) non-profits and is better organized as a 501 (c) (4).

But it got oh so much worse than that really quickly. In addition to wanting to actively lobby for political candidates, the proposed non-profit intended to assist the homeless and indigent by enrolling them in the multi-level marketing program of the company which was forming said non-profit organization.

Mill goes through the application for non-profit status in some detail, commenting on what activity is okay, falls into a gray area of the law, and falls off the rails completely. Some of that is definitely useful for those who are confused about the difference between issue advocacy and lobbying. But he also gets to the point where he starts to comment “I wish I were making this up.”

At the end he sums up all the problems he identified in a bulleted list:

At this point, you might be wondering whether your organization can learn anything from an organization that was planning on:

  • Scooping up homeless and other indigent individuals;

  • Putting them in a home together and brainwashing persuading them to pay to become salespeople for a multi-level marketing company,

  • Charging them a fee for that initiation on top of the fees that all salespeople pay up the chain;

  • Taking control of their finances and charging them money for non-compliance, and

  • Having their conscripted army of indigent salespersons produce videos, op-eds, and go canvassing door-to-door to campaign in support of the company’s chosen candidates or in opposition to the company’s political enemies.