Arts Instruction Is Critical…As Long As You Volunteer To Do It

by:

Joe Patti

Last week I came across a link to a story about Columbia University students who created a program to provide after school arts experiences in NYC. I absolutely applaud the efforts of these students for seeing the need and providing arts experiences to public school kids for the last seven years.

However, the title of the piece sheds some light on the underlying problem – “Students sub for arts teachers at underfunded MoHi school.”

Artists Reaching Out (ARO), the program created by the Columbia students is now teaching arts during the school day. While this is a positive step for the group since their reach has increased beyond those they can serve after school, it a poor reflection on the NYC Public School system that has replaced arts teachers with unpaid volunteers. This great learning experience for the Columbia students is marred a bit by the fact they won’t be able to use the experience as volunteers teaching the arts to find employment teaching the arts in NYC public schools.

I give credit to Reginald Higgins, the principal of P.S. 125 where the ARO program is teaching during school hours. He seems to be trying to lead his teachers toward integrating the arts into the subject instruction.

“It’s really hard for teachers to include dance, music, and theater in their lessons,” Higgins said. “It’s a lot easier when you have it built into your schedule and when you have individuals come in to help you learn ways to work with your students.”

The Columbia students make an effort to learn what topics will be taught in the coming weeks and customize their activities to complement the instruction.

Given the dichotomy of instruction which is especially marked in this school, the efforts of the Columbia students seems particularly valuable in the lives of the PS 125 students.

“PS 125 shares a building with two charter schools, which receive public funding but are privately managed.

“They’re surrounded by children in uniforms who have arts programs, have more resources, and that affects me,” said Emily Handsman, BC ’12, ARO co-coordinator, and head copy editor of The Eye.”

As I read this piece, I thought about an interview Sir Ken Robinson recently gave where he spoke about creativity not being an add on. As I went back to watch the video of the interview, Robinson’s made a comment about a literacy program in the UK where teachers had to provide a prescribed unit of instruction for an hour and how he felt there were those in the “government who hoped they would recommend a creativity hour…on a Friday…after lunch.”

That comment barely registered on my conscious mind at the time, but popped to the surface when I looked at the ARO website and noticed their program required “Volunteer commitment of 4 hours/week, Friday afternoons, off-campus.”

That is certainly nothing more than coincidence, of course, but as the article describes the experience of the ARO participants in the schools, there is much the same sense of the arts instruction being relegated the status of an add on and being viewed by some as an inconvenience.

“The ARO students are building the capacities of my teachers,” some of whom are “art-phobic,” he [Reginald Higgins] said, adding that teachers of older students were worried ARO lessons would take away from time to prepare for standardized tests.

Fox said that increased attention to standardized tests has nearly wiped out exposure to the arts in public schools, but that teachers’ concern was “definitely legitimate.” “We’re really, really aware we’re taking time out of the school day for this, so we want to be sure we’re helping the teachers and not placing an additional burden on them,” Handsman said.

It is a bit dispiriting that the ARO students view their activities as taking time away from more important efforts. Ken Robinson made a comment that made me realize just how un-student centered standardized testing is. He points out that instead of serving education as a guide for making changes, instruction serves the standardized test. He notes that no student gets up in the morning inspired to help increase the standardized test score rating of their school.

Students don’t become unemployable adults because someone looks at their 5th grade standardized test scores, they are unemployable because there was a lack of engagement in their learning. The tests have meaning to teachers, principals, superintendents, legislatures, governors, Congress and the President of the United State and fulfill their needs, but have no direct significance to the students whose educational lives they will purportedly help.

The 5 minute video of Ken Robinson’s interview is worth watching. He points out the “there is not enough time to do it right first time around, but time to do it over” status of the U.S. education system observing that most remedial programs are geared personally to the student after discovering what inspires them. It would be cheaper to have a more individualized focus on instruction than to pay multiple people to teach the same thing to a student more than once.

Can Arts Orgs Play Moneyball With Their Staffs?

by:

Joe Patti

Ever since the movie Moneyball came out, I have been thinking about whether similar system can be applied to the arts. I mean a system by which baseball teams with small budgets were able to compete on par with the most well-funded teams by assembling a team of under utilized misfits? Heck, I am describing the place you work, right? It seems ready made for the arts!

I was happy to see a recent post by Shawn Harris on the TCG website raising the same general question. I agree with most of what Shawn suggests, including taking an objective look at different aspect of our operations and audiences to determine whether we are truly serving the interests of the community or just perpetuating assumptions.

One assumption I feel pretty safe in making is that what motivates people to attend a baseball game is different from what motivates people to attend an arts event. While celebrity is certainly a factor, people attend baseball games looking for an engaging contest. If they don’t know a lot about each of the players, that is okay if the game was well played. Can the same be said about an arts event? If someone is unfamiliar with a performance, will the fact that statistically speaking, the actors, while unknown, are the most effective performers in a period play?

Probably not. But then again, you shouldn’t be selling the show based on statistics anyway. Even though stats are a huge part of sports, that isn’t what primarily sells tickets. While a well-known artist would make it easier to sell a show, in the long run it is going to be better to take the “brains in the seats” view and work on engaging audiences in the organization, one aspect of which is going to be based on the quality of your personnel choices.

That is what I first started thinking about when I was considering whether Moneyball could be applied to the arts–are we hiring the best people? More over, are we actively seeking the best people or just casting a net and taking whatever swims our way?

I recall going to an Arts Presenters conference where Andrew Taylor talked about how a lot of arts organizations didn’t know how to effectively evaluate the skills of job candidates. He said there was a tendency to hire to the specifics of a job description rather than to the general needs of the position. Though he did mention an associate who hired a person who managed a Sears call center to run their ticket office after some unsatisfying interviews with people from the arts field, it seemed the exception rather than the rule. Taylor said he teaches his students to take control of the interview in order to illuminate their skills and illustrate how it applies to the criteria laid out in the job description.

While I am reluctant to put arts people out of work by suggesting that you look to hire those without any industry experience, I think it can help to always be mindful of the basic abilities you seek in employees. I once had lunch with some representatives from Enterprise Car Rentals and they were so impressed by the affability and service provided by one of the wait staff, they tried to recruit her at the end of our meal.

When was the last time you even thought about adding a person you met outside the context of the arts to your team? In fact, other than pursuing people who would increase the prestige of your company, when is the last time you tried to recruit someone way from another arts organization based on abilities and effectiveness alone?

When I think about the Moneyball model of finding success putting together a seemingly mismatched set of players few other teams desired, I wonder about our collective ability in the arts to effectively identify and cultivate the talent of people who aren’t necessarily shining in their current position. I know this can be tough in the arts where everyone wants to be the star actor/dancer/artist/director. Even if you are perceptive enough to see their talent lay elsewhere, people may be resistant to taking a different role.

The thing is, non profits should be pros at identifying and leveraging undiscovered skills. With all the volunteers we use to assist us with our programs and to serve on our boards, we should be championing seemingly unorthodox hiring decisions. But if Andrew Taylor is correct, the hiring practices in the arts are actually more orthodox than in the for profit sector.

If that is the case, perhaps we aren’t using our volunteers’ skills as effectively as we could, as well. That question starts to bring me back to my post last week featuring Aaron Hurst’s suggestion that certain volunteer programs may be a waste of time.

The research he cited found little difference in effectiveness between well- and poorly- managed programs involving less than 50 people. I wonder though if well managed programs might have beneficial side-effects for organizations in the form of improved hiring skills. In other words, the capacity to identify and employ highly capable people may be developed in the process of effectively doing the same thing with volunteers.

Crowdfunding Become Crowdinvesting?

by:

Joe Patti

In the “stuff you aren’t supposed to do” theme of yesterday’s post, is a piece from Slate about legal restrictions on crowd funding.

While thousands of people can donate to your cause via sites like Kickstarter, SEC rules prevent those same people from investing in your company. If you figure people will donate to people in return for tshirts or other small thank you gifts/services, there is probably a fair bit of potential in getting people to invest in the same project with the possibility of financial return. But the rules say no way.

“Under current law, that is often illegal. A longtime Securities and Exchange Commission rule, designed to protect unsophisticated investors, limits the number of stakeholders certain private companies can have. If you hit 500, you often have to go public. That means opening your books to additional scrutiny and your business to the whims of the market. And being public is just not a feasible option for a tiny business looking for start-up funding. Thus, an artist can receive thousands of $5 donations on a site like Kickstarter, but an incorporated farmer cannot accept investments from thousands of interested small-timers.”

These are some of the same rules that govern investing in Broadway shows and are meant to prevent people from losing large amounts of money because they were not entirely aware of the risks of investing. There is certainly some wisdom in having them.

There are some moves to change this situation. President Obama included such a revision in his American Jobs Act. Even though the act failed to pass, the basic idea has bi-partisan support and some law makers are asking the SEC to change the rules. One petition to the SEC asks for an exemption for investments made in $100 increments as a way to prevent people from losing their life savings. Given that the exemption would mean less oversight of the activities, there is good potential for unscrupulous operators to take the money and run.

Laura Horton at the Legality website has a post that discusses all the legal issues and the efforts to change the rules at length. She reports that the legislation being introduced in Congress, (as opposed to the petition for a rule change to the SEC), would allow a business to raise “$5 million in capital, with a limit on individual investments of the lesser of $10,000 or ten percent of an individual investor’s income.” Horton notes that these companies would be exempt from some of the usual reporting. Hopefully at $10,000 a person, they wouldn’t be exempt from as much as a company getting funded $100 at a time.

Crowd funding at these levels could open the doors for a lot of possibilities, including starting an arts related business. This model might provide a viable alternative to the non-profit structure. It could provide the tools to not only to get an organization started, but also to sustain it over time.

As for how fraud will be prevented, Horton says,

“those in favor of crowdfunding find that investor protection rests on a fundamental aspect of this financing, opening it to lots of people for investment. This “crowd” aspect creates transparency, which may temper the effects of deregulation. There is also a stronger sense of community support through this style of investing. Crowdfunding makes venture capital accessible to small-scale business owners.”

I have to confess some skepticism about this approach being viable in the long run. A crowd can provide good oversight in a small geographic community or when it is performed by investing clubs who meet to research and decide who to fund. My suspicion is that if this type of investment is going to reach any sort of scale, people are going to be doing it over the internet and will rely on Amazon.com type reviews to make their decisions. Presumably, the rating mechanism will be a little more rigorous and have better protections against those who might try to game the system than most online rating websites. It is still likely the system will still be vulnerable to some degree of subversion.

But who knows, it may create a burgeoning industry of companies who meet those soliciting funding and perform objective evaluations and audits. They could post all their findings online accompanied by video interviews, photos of operations, etc for investors to use in their deliberations.

Info You Can Use: Commerciality Doctrine (What The Heck Is That?)

by:

Joe Patti

Hat tip to Non-Profit Law blog for providing the link to Charity Lawyer Ellis Carter’s 2009 post about the Commerciality Doctrine. As you can probably tell from the title of this entry, I wasn’t really aware of this doctrine at all, but it is actually very important in terms of an organization’s 501 (c) (3) status.

According to Ellis,

Commerciality Doctrine has evolved in the courts and is applied to determine whether an organization complies with Section 501(c)(3)’s requirement to operate exclusively for exempt purposes. A key factor indicating an organization is operating in an excessively commercial manner is that its activities are in competition with those of for-profit commercial entities.

Reading what criteria the courts use as a test for whether a non-profit organization is operating in an excessively commercial manner, I start to get a little nervous:

-pricing to maximize profits;

-generation and accumulation of unreasonable reserves;

-use of commercial promotional methods, such as advertising;

-sales and marketing to the general public;

-high volume of sales;

-the organization uses paid professional staff rather than volunteer labor;

-the organization discontinues money losing programs; and

-the organization does not receive significant charitable contributions.

Most organizations probably don’t have to worry about accumulation of unreasonable reserves and seating capacity may limit high volume of sales. If arts organizations start to adopt dynamic pricing for shows, they may have to watch how high they push prices. But a lot of non profit arts organizations have professional staffs who have replaced volunteers somewhere in their history. Even those without professional staffs use advertising, sales, marketing and discontinue money losing programs. How do you not flirt with violating your status under this criteria?

So is it actually good to keep those money losing programs around? Apparently so…

Factors evidencing the absence of a commercial purpose include the following:

-lack of competition with for-profit entities;

-below market rate pricing;

-relatively insubstantial reserves;

-lack of commercial advertising practices;

-the absence of sales to the general public;

-low volume of sales;

-use of volunteers and low-paid non-professional staff; and

-significant charitable contributions.

This list almost makes a virtue of incompetence and lack of ambition.

But the first thing I thought of after reading this list was, what about the Roundabout Theatre? How the heck have they avoided being shut down on this basis. Except for requiring as significant charitable contributions as anyone else, they are a non-profit that essentially fails on every one of these measures.

They actually may have run afoul these laws and I am just unaware of it. Plenty of commercial Broadway producers have expressed criticism about the way the Roundabout and other non-profits like Lincoln Center enjoy a competitive advantage over them. Back in 2000, long before he became chair of the NEA, Rocco Landesman wrote,

“increasingly the template of success comes from the commercial arena, which is, in the end, not dedicated to the art so much as to the audience. The uber-model for this trend is ”the American Airlines Roundabout Theater,” whose artistic director, Todd Haimes, saved a bankrupt institution by adapting contemporary, market-savvy, the-audience-is-king techniques of modern corporations. Pleasing the customers, giving them what they want in the form they expect, works for Coca-Cola –…It would, I suppose, be hyperbolic to say that Todd Haimes has had a more pernicious influence on English-speaking theater than anyone since Oliver Cromwell (and it wouldn’t be nice, either, since Mr. Haimes is a personable and honorable man)”

Now it should be noted that Landesman’s piece expressed regret that the non-profit theater movement toward a commercial orientation due to market forces has meant that little original work is created any more. Though he has “accused Haimes of running a wolfish commercial operation in the sheepskin of a publicly funded institution.”

The idea that decision making in non-profits shouldn’t be motivated by a need to compete with commercial entities is probably part of the basis for the criteria of the Commerciality doctrine. Although Carter provides an example of it, I wonder how often and strictly the Commerciality Doctrine is applied to non-profits. With cuts to arts funding at all levels and an oft repeated litany that performances should be self supporting or not occur at all, is it fair to require that non-profits ignore the pressure to support themselves with strategies that create more earned revenue?

Todd Haimes has said as much,

“I feel enormous pressure to generate income for our theater,’…`I’ll do anything within reason, as long as it goes back into the nonprofit purpose of the Roundabout,” Haimes said. “So I’m trying to be more creative.”

With a $40 million budget in 2008, $12 million in donated and needing $13 million in sales, most of us are not anywhere near Roundabout Theatre’s ability to raise scowls from commercial competitors. We do face similar pressure to perform well and might well find our ambitions causing problems for our tax status given that so many other aspects of non-profit operations are being examined.