Info You Can Use: Board Members Can Be Personally Responsible For Gross Inaction

Responsible governance by non profit boards is becoming an increasingly important and discussed topic. Non-Profit Law blog recently pointed out a court decision that emphasizes the need for boards to take their oversight duties seriously.

The following should especially be of interest: (my emphasis)

…that governing boards of not-for-profits who have actual knowledge of mismanagement by the officers of the corporation and choose to ignore it and/or not take appropriate action, can be held financially liable for breach of their fiduciary duty of care. The decision carries special weight because it turns on its head the long-held assumption that nonprofit directors are insulated from financial exposure, barring personal involvement in corruption, venality or fraud. This should be a wake-up call to nonprofits about the very real perils of inattention or inaction.

This case is related to the board overseeing a not-for-profit retirement home where the board’s inattention was particularly egregious. Board meetings were poorly attended, there was no treasurer, no finance committee as required by bylaws and the board was aware that the chief financial officer wasn’t maintaining records properly.

It is the fact the board was aware of the mismanagement at the retirement home, (I haven’t listed even 1/4 of it), and allowed much of it to continue, exposed them to liability.

Many states have laws similar to that of Pennsylvania where this case occurred, which says a board member is:

“…entitled to rely in good faith on information, opinions, reports or statements, including financial statements and other financial data” prepared by employees or experts. However, “[a] Director shall not be considered to be acting in good faith if he[/she] has knowledge concerning the matter in question that would cause his[/her] reliance to be unwarranted.”

If a board member has based her decisions information and advice she has every reason to believe is accurate and dependable, then she is more greatly insulated from personal liability should mismanagement and impropriety be surreptitiously running rampant.

Most people need not fear joining a non-profit board of directors, even for an organization that appears to be struggling financially, if they are diligently monitoring the situation and taking steps to rectify it. (And making sure such actions are being properly recorded in the meeting minutes.)

As I have noted in the past, if you do find yourself on the board of a failing non-profit, even though it may occupy an inordinate amount of time and energy, it much better to stick it out until the bitter end than to potentially expose yourself to greater liability by quitting.

Shirtless Men As Institutional Marketing

Oklahoma City Ballet Executive Director Shane Jewell wrote a piece recently on the Clyde Fitch Report discussing the ways in which his organization has used performance and institutional marketing to promote itself.

In discussing the familiar practice of performance marketing, Jewell goes to some length to distinguish the video they did for their production of Cinderella as a trailer rather than a commercial. What might be confusing is that in the next sentence he states the commercial won Gold at the Oklahoma City ADDY Awards.

After re-reading the post, I assume he wants to emphasize that they didn’t view it as a commercial because it diverged from the expected pattern of

“…live-performance footage with voiceover and text. This is possibly a company’s biggest waste of time and money. The only people who would enjoy this type of commercial are those who are already fans of ballet, and more than likely they do not need a commercial to alert them of upcoming performances… The goal of performance marketing is to attract new audiences.”

My initial concern was whether the trailer might set up unrealistic expectation in people who were not familiar with ballet. (Though on the other hand, we pretty much expect trailers won’t be completely accurate representations of movies so it probably isn’t a big problem.)

What I really want to focus on though is the ballet’s handling of less frequently used institutional marketing–essentially the effort of demonstrating that your organization is a part of the community rather than apart from the community.

Noting that their community is very athletically oriented, the ballet created a print ad using their dancers to depict the fierce cross state rivalry between Oklahoma State University and University of Oklahoma. (You can see the ad in Jewell’s post.)

They also created a video emphasizing the athleticism of their dancers which they ran during the portion of the year they weren’t performing.

Oklahoma is a sports state so we played to the athleticism of our dancers and you don’t even realize you are watching a ballet commercial when it begins.

Here is the ad. Whether it was intended or not, I felt like the “Oklahoma City” graphic at the end with “Ballet” only popping in for the last second, communicated a sense of “we are you.”

After seeing these ads, it probably won’t surprise you that Jewell’s last bit of advice is- “know your audience. And have your men take their shirts off.”

You may be looking at this videos and thinking it must be nice to have the production budget to be able to make these videos. Jewell said the ballet trailer increased ticket sales enough that they covered the expense of making it.

While it is true that you often have to spend money to make money, I can personally attest it can be very easy to direct funds toward ineffective efforts. It can be extremely difficult to justify spending money on marketing that is not connected to a revenue generating activity. That is money you could use for that very purpose three months down the road.

There are opportunities for institutional marketing that don’t necessarily involve producing ads. I am reminded of the activities the Trey McIntyre Project engaged in around Boise, ID. In addition to their concerts, they generated flash mobs, danced at the local NBA farm team basketball games and participated in an art installation in a local hotel (starting around 3:30).

Certainly these type of things demand resources of their own. Time spent on them is not being spent on rehearing or creating, but the option is there.

And there is always having your men take their shirts off.

Would The 18 Year Old You Listen To Career Advice From 40 Year Old You?

Yesterday Thomas Cott tweeted two articles taking a Pro and Con view of the value of arts degrees. The first talked about how you don’t have to appear on Broadway to have derived value from your theater degree. The second wondered if BFA and MFA programs in dance aren’t part of a pyramid scheme.

My criticism of both articles is that they overlook just how important self-motivation and the influence of social dynamics are as factors in your success.

The piece about theater degrees rehashes lists I have seen in multiple places about how many key life and business skills you pick up by studying theater. These lists ignore the simple fact that you only acquire these skills by applying yourself diligently — something you can accomplish by working in construction, catering, and auto repair while pursuing any number of humanities degrees.

Theater doesn’t enjoy some special lock on the cultivation of creativity and marketable skills.

In the piece about dance degrees, I agree that too many training programs in the performing arts, including dance, don’t emphasize the need to develop career skills nearly as much as they should. I have done a lot of tongue biting over the years when I have wanted to scream in protest.

To some degree it is difficult to communicate the importance of acquiring these skills to young adults who just want to perform. In theater, it is hard enough to get actors to seriously apply themselves to learning technical theater skills even knowing the skills make them more employable.

The thing is, training in higher education is expensive across the board. If you think you can acquire the knowledge and skills on your own either through a series of employment opportunities or by independent or online study, that is great.

But for most people, going to school is the only way to raise your abilities to the standard required or the only way to keep yourself motivated and focused on acquiring those skills.

While I probably could have picked up the same abilities I acquired while pursuing my MFA in Arts Management through jobs and studying, I don’t know if I would have been motivated enough to do so at the time I enrolled. It probably would have been a number of years later before I was together enough to do so on my own.

In some respects, I use the audience for this blog as a substitute for the formal school environment to keep me motivated to constantly read, research and think about arts management.

That brings me to the other factor I mentioned earlier, social dynamics. This is something that exists in every arts training program, that no school can honestly represent the quality of.

How you interact with other students, faculty, members of the general public can have an enormous influence on you. This can determine how driven you are, how culturally omnivorous you are and what opportunities you avail yourself of.

I say that no training program can honestly make claims about how supportive the environment that their school is because these dynamics are constantly shifting and changing. Numbers of students, faculty and performance opportunities printed in a brochure have nothing to do with it.

I worked in places with a large number of undergraduate and graduate students who were involved with a good number of projects. Except, as mentioned in the article about dance programs, they were all associated with the academic program and few people worked on independent projects.

I have worked at a community college that didn’t even have a minor in a performing arts discipline and students were involved with creating their own performances on campus, forming performance groups with people from the community, involved with other established performance groups and picking up cross-disciplinary skills in the process.

Some of this was facilitated by efforts the academic departments made, but by and large it was the result of a cohort of students who kept each other motivated and managed to sustain their energy even after graduations. None of it was part of some long range plan. It just happened.

I can’t say who has the better chance of being employed as artists over the long term. Formal training programs have the imprimatur of a degree, the cachet of their name and the network contacts of alumni and faculty.

People who have been omnivorous in their pursuits may develop a following and recognition that their creativity, range of knowledge and skills and entrepreneurship are well suited to the current arts environment.

The truth is, it isn’t too long after you graduate that what you have done and what you can do right now becomes more important than where you studied. (Though certainly there are places whose name recognition is still impressive 20 years after you graduated.)

But as anyone who reads this blog can tell you, working in the arts is really hard.

Admittedly, when you are 18-20 years old, it is extremely difficult to know what education and career path you should be pursuing to bring the most success. The same is pretty much true at 40.

When you are looking at a career in the performing arts, the cost of attending a training program or forgoing it is not as real to you as it is four years or so later and you look back in regret at choices made or not made.

Let’s also be honest that training programs want to sell you on attending them. As an aspiring artist, you are going looking for them. It may actually be to the credit of BFA & MFA programs moreso than many other academic disciplines that they reject a lot of people. This may be the biggest favor they do for many.

Yes, they need to do a much better job in respect to preparing people for careers and should be working harder to discourage people who aren’t exhibiting the discipline and skill at that time that they need to succeed.

But it really is not in their best interest to dissuade people too strongly.

The benefit students today have over students from 10-15 years ago is that so much about the reality of an arts career is discussed online now. It is possible to make a much more informed decision today.

Think back though. Even if you sought out or were given links to articles like the one about dance programs being a pyramid scheme, would the 18 year old you have been dissuaded?

Can Fundraising Be Inspirational To All Involved?

Last Thursday I attended an art show opening at the shop of a wood furniture maker. The owner of the shop invited some college kids in to festoon his walls with their work which leans heavily toward graffiti.

A couple things struck me while I was there.

First, the owner of the shop sells his furniture starting at about $2500 and going up. Except for a handful of people, few attendees at the opening could likely afford to buy his work because they were mostly college students.

Likewise, the fact the artists worked in a graffiti style, the art work isn’t likely to attract the type of people who will spend $2500+ to his store while the art show is up.

Clearly, the store owner was motivated by a desire to support local artists and not by a desire to grow his customer base.

I was impressed by the work the students had put into the installation. There were a few hundred hours worth of effort invested.

What I valued more was the opportunity this offered the artists to talk about their work with people they had never met. This is an important skill for an artist to acquire and be comfortable with as they work to advance their career.

These guys were really well organized. They had prints, tshirts and stickers for sale. They also had a laptop with a slide show of their work so you could order tshirts.

On the whole, they were doing a really good job of promoting themselves with the help of this business owner.

You may take inspiration from this story or it may give you ideas for a program you can cultivate among businesses in your community.

Much about this story is exactly what occurs when a non-profit organization asks a person or business for support in some fashion.

People give, and even though the organization may offer different levels of recognition, unless the donor/sponsor is giving a major amount or your organization is a focus of social and business activity in the community, there may not really be any direct benefit to their company in the form of goodwill or increased business.

As I thought about it, I realized when it happened to someone else, it was inspiring and exciting. When you have to solicit support for yourself in order to secure fiscal stability, it is business and somewhat burdensome.

When I tell you, look at this case, the gesture this business owner made enabled these artists to hone their communication skills and promote their work, it sounds so exciting and inspirational.

Telling a donor or granting entity that their support will enable fledgling artists to improve their ability to discuss and promote their work, it doesn’t feel as exciting. Maybe because you know this is only a small part of what the money will be used for or perhaps because the solicitation doesn’t have an immediate and direct connection to the result.

I have been wonder since last Thursday if there were any way to instill more of a sense of excitement and inspiration into the solicitation process but I can’t really think of any.

The artists who showcased on Thursday got their opportunity because they met the business owner at a similar opening that occurred in December. The person who is rumored to be doing the next show met the owner in much the same way.

But by and large, no one will know you need support unless you tell them so you need to go through the solicitation process. There is a certain degree of scrutiny and follow up reporting that is involved with any significant transfer of monetary and material support.

As much time, inconvenience and effort the business owner has spent by allowing different artists to showcase in his store, the expense hasn’t been terribly large for him at this point.

The only time the process isn’t going to require bothersome and boring effort that I can see is if you happen upon a comedy movie ending where you inherit an enormous sum from an unknown admirer.

For all my doubts, I still wonder if it might be possible to make fund raising/solicitation an enjoyable experience for everyone involved. I would love it if the experience I had last Thursday was scalable so I am especially curious to learn if anyone out there has managed to design such an experience.