Business Models

Can You Pursue The Intrinsic Value of Arts Alone?

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There was a post by KCET columnist Corbett Barklie last fall that has had me thinking and wondering if there hasn’t been enough conversation about this topic.

In short, Barklie feels that arts organizations are sacrificing a focus on the intrinsic value of art in the pursuit of “social service” related activities. (my emphasis)

Arts groups exist to interpret the past, elucidate the present, and imagine the future. To borrow from Dewitt H. Parker’s The Principles of Aesthetics, “The intrinsic value of art must be unique, for it is the value of a unique activity — the free expression of experience in a form delightful and permanent, mediating communication.”

Nonprofit arts groups and the artists that run them are not reactionary entities. They are visionary entities.

You may be thinking, “But what about art groups who work in schools? Artists who work in hospitals?” In my opinion, those are arts service organizations — a rarely made but critical distinction. Arts service organizations exist to create and provide ancillary programs that help fulfill the missions of social service nonprofits such as schools, community centers, hospitals, etc…

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Because no distinction has been made between arts groups and arts service organizations, the general arts and arts policy conversation (set by funders and designated leaders) is getting more and more muddled. And artists who exist in organizations that are only concerned with artistic excellence are beginning to feel marginalized.

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Unless and until arts groups find their voice of disagreement and set aside fear of funding or political ramifications long enough to speak up for themselves, the conversation will continue to focus less and less on challenges facing arts groups that are committed solely to artistic excellence. Eventually these arts groups will fade from view completely.

My first thought was, but isn’t an educational component the way it is supposed to be? Most non-profit organizations are organized under the aegis of the education part of 501 (c) 3. In a time when there is less arts education in schools, isn’t it in our best long term interest to be providing educational services? But then again, by Barklie’s definition, I have been working for arts service organizations for the last 20 odd years so this is the normal for me.

So my question to my larger audience; is it as Barklie suggests (and most recently echoed by Diane Ragsdale), have funders and others lead the arts in this direction?

After all, at one time, art was presented for arts sake and there wasn’t any efforts to supplement the efforts of education and health care.

Is this an improvement or a dilution of our effort? It can be argued that pursuing education programs helps put arts organizations in touch with their and constituencies, helping to remove ivory tower mentality and acculturate the community.

But there is also the issue of diverting resources from the core competency and mission of the company. For profit businesses aren’t expected to do this. Many get immense tax breaks with no expectation that they serve the public good.

Is it the new normal that arts organizations must split their focus in order to maintain their existence? Is there an egotism inherent to believing you should be able to pursue the intrinsic value of art alone?

Shaping oneself as an arts service organization seems about the only option for garnering foundation funding and mollifying governmental entities who want something more than pursuit of artistic excellence as a justification for being.

Thoughts?

Religion vs Arts, Who Wins The Battle Of Orthodoxies!

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Since the very beginning of the blog, I have been keeping an eye on the intersection of performing arts and religious communities. A recent NY Times article seems to include quite a number of places where this occurs.

It starts by describing a warehouse space that has the

“trappings of a revitalization project, including an art gallery, a yoga studio and a business incubator, sharing the building with a coffee shop and a performance space.

But it is, in fact, a church. ”

If you look at the website of this art gallery-cum-yoga studio-cum-etc-cum church, it might take a couple glances to realize it is a church.

You can say a lot about the importance of adhering to propriety and doctrine that should be part of sacred institutional practices and how the approach of many organizations isn’t invested with appropriate due seriousness.

But you can say the same thing about churches, too.

Oh wait, I mean arts organizations. Wait, which one was I talking about? This is so confusing.

You may be surprised to learn that not only has church attendance been falling lately, but there is a churn rate of about 40% annually.

Sounds a lot like the plight of arts organizations, eh?

Not only that, there is a real bias toward entrepreneurship

“For new leaders coming out of seminary, “the cool thing is church planting,” Mr. Bird said. “The uncool thing is to go into the established church. Why that has taken over may speak to the entrepreneurialism and innovation that today’s generation represents.”

Sounds a lot like the sentiments of performing arts kids coming right out of school that want to start their own company.

Like arts organizations, there is a push to connect with the communities in different ways, some going so far as to remove references to “church” and “services” in favor of “gatherings” and “communities.” One group has seen some success with centering their spiritual communities in coffee shops and is preparing to franchise their coffee concept.

As strange as a chain of spiritual coffee houses sounds, the trend seems to be away from the huge mega-churches, many of which have been foreclosed on, toward smaller multipurpose spaces that can be turned toward earning revenue rather than being empty six days a week.

In some respects having a church be the center of community center is a return to old practices. Chartres Cathedral was a bustle of commercial activity both inside and out.

One of the prime questions that emerges for me as I read this article is how religious/spiritual groups, which I believe stand to suffer much more from embracing the trappings of popular culture and entertainment than arts organizations do, seem to be a bit more nimble than the arts community at experimenting with new approaches?

I realize that many trends reported on by the NY Times are often not as widespread as the paper makes it appear, but as a person who rents a facility to religious services, I can attest that the article isn’t many degrees different from my experience.

It amuses me to think that the arts community self imposed idealism about selling out and becoming too commercial might actually represent a more inflexible orthodoxy than those embraced by religious communities possessing texts containing rules of behavior.

Though it isn’t as if the arts community isn’t having this same conversation. This is what Creative Placemaking is really all about. What these churches are doing may provide some interesting models and even potential collaborators in the pursuit of placemaking.

Do Arts Really Need A Tax Status Of Their Own?

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Today is the 150th anniversary of the Emancipation Proclamation. If you saw Spielberg’s movie, Lincoln, you will know that there were many concerns about the legality of trying to make the proclamation stick, especially upon reunification of the country, which necessitated the adoption of the 13th Amendment to ensure the abolition of slavery.

The movie actually reminded me a lot of an episode of The West Wing where legislative wrangling was set against the backdrop of a president’s daily national and personal concerns. Either the job hasn’t changed a lot in 150 years or Spielberg was presenting the story in a familiar context.

Let me state clearly from the outset I don’t want to equate slavery with non-profit art organizations. The anniversary and the relationship between the proclamation and 13th amendment is just a convenient excuse to revisit a topic.

The concept that a situation only had tenuous legal support has parallels in the non-profit status most arts organizations enjoy. There is no mention of arts organizations in the 501 c 3 tax code. I made note of this in an open letter post to President Obama on the occasion of his inauguration four years ago.

In that post I asked the president to help the non-profit arts sector by providing a specific, better designed tax structure in which arts organizations can operate. Thinking back I wondered if that was still necessary given the continued emergence of the L3C model, B corporations and the crowd funding/investing options allowed by the JOBS Act.

Don’t get me wrong, none of these options are well suited to arts organizations. I just started wondering if the arts are really best served if the government legislates a specific structure within which they must operate. Experimentation with planned organizational expiration may do more to cultivate viable, community/situation specific models than asking for one to be legislated.

Having arts organizations making common cause with for-profit corporations and other interests to advance laws and regulations they mutually favor may do more to raise the profile of arts organizations in general than had the arts groups worked among themselves to carve out something specific to the arts sector.

Just something to think about at the start of a new year and a new presidential term since many ideas and opportunities have emerged since the last one.

Stuff to Ponder: Get Thee To A Start Up Weekend!

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I was intrigued to see that the Scion car company is running a contest to help cultivate new entrepreneurs. Scion has always positioned themselves as a lifestyle brand, (disclaimer: I own one of the first 100 Scions sold in my state.), but I thought this was an interesting approach for them.

Basically, they will fly up to 50 semi-finalists to LA to participate in a three day event where they attend seminars, meet up with mentors and receive advice on writing press releases, forming LLCs, getting loans, soliciting investors and copywrighting ideas (I am guessing they mean trademarking since you can’t copywright ideas.) The semi-finalists then rewrite their proposals and finalists are chosen from the best revamped proposals.

I am sure there is a lot Scion will get out of it, but free advice directly applying to their own business isn’t one of them. One of the first restrictions on the contest is that it can’t be related to the car industry or Scion’s business activities.

This idea isn’t new. There are tons of entrepreneurship competitions out there as well as start up weekends where people from all sorts of background come together to meet and potentially launch a start up in the course of 54 hours.

The Scion contest got me thinking about two things- First, could an arts oriented project end up as a finalist in one of these type of competitions? Could someone go into one of the Start Up Weekends and emerge with a viable arts oriented company and business model after tapping into the brains of those present?

My second thought was from the other direction–should arts professionals participate as advisers in these sort of events in order to exhibit the value of the arts in the community beyond just entertainment? This might go a long way toward making the case not only for arts organizations, but perhaps more importantly toward the value of arts in education, if it was shown that it can contribute to the development of products and ideas that are indeed marketable.

The success of the design school teams over the business school teams in a University of Toronto’s Rotman School of Management challenge already started to provide some indications of this.

I have written about articles on what private enterprise can learn from non-profits.

I also pointed that it is important to note that the value of many of the creative exercises arts organizations can offer business lies not so much in the superficial motions of the activity as the fact that performing them means you are carving time out of your day to devote to creativity.