Where Your Duty As A Non-Profit Lies

by:

Joe Patti

I had to wonder if people were intentionally misreading the post I made about the Arts Council of England requiring applications for funding. My declaration that “Once again, Europe proves their arts policy is superior to that of the U.S.!” was meant to be read a little tongue in cheek lampooning the constant refrain that the arts policy and audiences in Europe are better than in the U.S. And even if that tone didn’t come across, I would have thought that when I wrote sentence or two later that the reality was that the policy is exclusionary and then spend 500 or so words talking about how it will be improved, it would be clear that I wasn’t seriously supporting the old way of doing things.

But I wasn’t really put off by the comments on the entry or by Leonard Jacobs post criticizing this view on The Clyde Fitch Report. In my mind, I was guilty of the age old failing – If you have to explain the joke, you didn’t deliver it correctly. Besides, I figured my blog would get some traffic from the Clyde Fitch Report post.

But then I got to thinking about it. No arts organization ever forms for the purpose of filling out grant applications. Yes, you know when you form your non-profit, it is something of a necessity for doing business. It isn’t a surprise that filling them out does indeed divert energy from the core purpose of the organization. So yes, on second thought, I do think it is pretty much the duty of every non-profit organization to gain funding with the least effort possible so they can get on with their core purpose. It isn’t just me saying this. The biggest measure of non-profit effectiveness is the ratio of how much raised goes toward programs vs how much goes toward overhead and expenses. This is the measure Charity Navigator used to rate my local United Way dead last among local non-profits.

Charity Navigator admits their evaluation doesn’t look at the quality of programs non-profits offer, a fact those at the bottom of the list are quick to cite when they decry the legitimacy of the rankings. But this is a measure that is gaining more and more traction, especially among politicians who are questioning the salaries of those few non-profit executives who actually make enough worth noting.

No surprise politics plays a big part in who gets government funding and who doesn’t. In that context it is get tougher to say that the old policy for funding by the Arts Council of England is really worse than that of the NEA. There are categories of people who were once eligible for funding by the NEA who no longer are due to changes in laws and policies made in reaction to political pressure. We have had mayors of New York City who have unilaterally declared that arts organizations will not receive funding because of program content. Are situations where individuals have the power to rescind funding awarded by a small group of people based on an application any more egalitarian than a situation where a small group of people are empowered to decide who will receive funding based on their own judgments (as well informed as they may be by the vastly superior arts environment which exists in Europe)?

Actually, on the face of it, I would say yes since the criteria being used by the NEA to award grants are clear from the outset, regardless of the pressures exerted to shape those criteria. As I mentioned in my original post, the process and criteria by which the Arts Council decided which organizations to fund and how an organization might even enter the council’s consideration was murky at best. Politics are going to tinge any decision making process where judgments are present. Lets not pretend though that the lengthy application process, be it an electronic or paper submission process, is the best and only way for governments to disburse funds.

When my consortium met last week, one of the aspirations we had for our fledgling merger was right in line with the regional partner initiatives the Arts Council of England hopes to implement. We are looking to become organized enough to propose becoming a partner organization to the state arts foundation and receive annual funding for our activities outside of the normal granting process. To my mind 10-15 performing arts entities coming together to work in partnership is an approach worth funding in an alternative manner. I believe it would be counterproductive to require each of us to submit a separate applications because it would perpetuate the idea that we needed to compete as individuals for funding rather than to collaborate.

Let’s be honest, there is a lot of self-interest when non-profits are seeking funding. As Leonard Jacobs notes, many funders have restrictive criteria about what they will fund based on interests, geography and shifting priorities. Our interests in the criteria for government funding is based immediately on whether we and perhaps our close partners qualify. A desire for an egalitarian arts policy that benefits everyone else is more philosophically abstract, based generally on creating an environment in which our potential audience base comes to appreciate the arts. If our perceived rivals gain significantly more largesse, our attitudes can become less charitable.

I am all for any system that encourages a shift toward group interest and responsibility–especially if the group shares in the paperwork rather than just me. But more importantly if you haven’t guessed, I would welcome a shift away from the damn paperwork. Leonard Jacobs says to stop whining about the paperwork and do some work for it. Well, it is the art that is the work you are doing for the grant, not the paperwork. Nobody is interested in funding paperwork. Though reviewing written applications may be efficient in terms of cost, the paperwork is really about the least effective way to measure the worth of a project. It is just a measure of good writing ability, which granted is an art itself and deserving of support. But that is just the genteel way of saying that someone knows how to bullshit well and use all the correct phrases and keywords. Many of the online application forms don’t let you submit them if your costs exceed your income and therefore require that you lie to complete them even if the truth is that you spent $50 more than you made. The whole process is dishonest before anyone even looks at the application.

The arts by their very nature are meant to be seen and experienced. Yes, sending people out to visit grantees is expensive, but perhaps it would be done if there was better funding. Yes, the visiting team might make subjective judgments about the worthiness of your organization, but they are doing that already when they read your grant application.

Colleges and universities are accredited by regional bodies who send people to evaluate them on a regular basis to bring them into compliance with current standards. Now I will readily admit that compliance translates into paperwork. I will also concede that the schools probably pay quite a lot to be part of this process. And even though they aren’t part of the government, members of Congress have been criticizing the accrediting bodies. So I won’t even pretend this idea would satisfy the NEA’s biggest critics.

But if arts groups were organized under regional bodies, then the cost could be borne by many just as it is with the schools. The experience of those participating as visiting evaluators would be much more valuable than sitting on a grant review committee. Instead of learning what committees were looking for in a grant application, the committee member could actually learn about the best practices by groups in their region and share that information with their home organization. Not to mention they would be sharing information and developing deeper relationships with other arts professionals beyond what can be accomplished at conferences.

Granted so much of this is pie in the sky idealism currently, but that doesn’t mean we have to complacently accept the current way of doing things. Really, it may not be that the written application is a bad format, but rather the criteria it looks to evaluate is flawed. The visitation process I am suggesting would change the evaluation criteria out of necessity. But as an alternative, as our ability to record and share our accomplishments on media improves, it can be just as valid a tool in shifting what criteria is emphasized too.

Though I really think that that an extensive program of visits by well trained teams would go an incredibly long way in improving arts leadership and management. While I think the sites that hosts the visits might receive some excellent guidance, were I designing the program, my focus would be on cultivating the abilities of the visiting team over telling the host what they are doing wrong.

Consortium Merger Update

by:

Joe Patti

This week the state booking consortium of which I am a member met to start planning our upcoming seasons and also move forward toward our plan to merge with our sister organization. The governance committee upon which I sit had met about three weeks ago to discuss the steps we would have to take to accomplish the merger and work on rewriting our bylaws to come into compliance with practice. The committee spent about an hour discussing the relevant rules and laws the state attorney general’s office has for dissolutions and asset transfers of non-profit organizations and physically rewriting the bylaws.

Another three hours were devoted to discussing the implications of the changes we were proposing. Our consortium had already agreed we should shift from a membership to a board organization. What we ended up proposing this week was to shift from having organizations as board members to having individuals as board members. This was a rather significant move so discussing how it might manifest and what the impacts might be required some serious conversation. We felt this would provide much more flexibility and open up possibilities. For example, instead of focusing on writing grants to support the tours member organizations had arranged, the consortium would seek funding for touring or educational outreach and then decide how to apply it. The difference may be hard to discern, but it is possibly a significant change in the way the consortium operates and has the potential to position us as a partner to some granting organizations and foundations.

The biggest advantage is that the board would be free to choose its members rather than depend on specific organizations to send a representative. This would provide opportunities to bring people on based on their knowledge rather than affiliation. It could also allow the consortium to decide as an entity that it wanted to initiate a statewide arts in healthcare program where artists could barter their services working with hospitals, hospices, retirement homes, etc in return for low to no cost health coverage. The consortium’s direct involvement might be arranging outreach activities to these institutions by touring artists, but the benefit would be to all artists across the state, some of which may not be members of the consortium. Yet some of the board members may represent arts organizations that frequently employ these artists and find it in their best interest that the artists not have to worry about health care as they practice their craft. In this case, the board might seek to add a member from the healthcare field to advise and perhaps rally industry support for grants.

As the governance committee meeting was drawing to a close a few weeks ago, I mentioned that what we were proposing might cause a lot of debate at the full meeting because it was such a departure from the way business had been conducted. I noted that a shift in thinking away from the way we currently did business would be required. In fact, there was a lot of discussion about the proposal. There were a lot of “what ifs” asked based on the way we engaged in our activities. Some of the questions we had already considered and had responses to, but others illuminated the need for the creation of policy and procedures. Ultimately, I was happy to hear a board member who had not been part of the governance committee pointed out that we couldn’t think about the changes in bylaws completely in the context of how we currently operated and that it would require shifting our thinking.

There is still a lot of work to be done on the bylaws and one of the members of my committee uncovered more regulations governing dissolution and mergers with which we need to comply. I feel very optimistic about the work being done and the potential of the reorganization. Of course, it helps that the local community foundation received a large amount of money from the founder of eBay and they are directing some of it toward encouraging innovation in non-profits. It makes what we are doing seem relevant and timely.

Gentrifying Both Space And Time

by:

Joe Patti

So apparently arts activity can not only gentrify neighborhoods, it can gentrify time as well. I was attending some First Friday performances on the lawn of the state arts museum this past Friday and got to talking with the guy who organizes the activities. He is a prime mover in the arts scene involved with boards of a couple organizations, presenter of performances and a key figure in the arts district revitalization.

He told me that the downtown arts community was thinking about moving the gallery walk activities to another Friday. What had begun many years back as an attempt to bring activity to downtown at night by having galleries open succeeded a little too well. The First Friday activities made the district such a cool place to be that eventually the older mature crowd ended up supplanted by a younger, rowdy bar crawling crowd. Actually, this probably qualifies as a de-gentrification, doesn’t it?

Now no one is visiting the galleries and buying on First Fridays, but the bars are making their monthly payroll in one night. Things have gotten a little rowdy to the point where the police department is requiring that the downtown merchants association bring 14 more special duty officers on. The bars are being levied for the extra cost.

About a year ago, I started hearing about “slow art Fridays” on the 3rd Friday. From my discussion Friday night, I understand that this was laying the groundwork for the shift. Galleries and fashion houses are open on the 3rd Friday for this event and apparently the older, art buying demographic is showing up.

In the meantime, less effort is being put into the programming and promotion of arts events on First Fridays. There are still things going on and the doors are open, but the resources are being redirected. I was speaking with a ticket office clerk yesterday and he confirmed that things were dead in one of the cornerstone venues this past Friday.

So you are probably wondering, what keeps people from going down every Friday night and getting drunk in the streets? Nothing. There is nothing stopping people from doing the same thing on third Fridays, but they aren’t doing it yet. Since people aren’t really patronizing the galleries, that isn’t a motivating factor for coming downtown. Perhaps I am not listening to the right radio stations or reading the right newspapers or Twitter feeds, but I haven’t really seen bars pushing drink specials on First Fridays. They don’t have to. Probably the energy of being part of a big crowd is what is most attractive to people.

Perhaps it is the perception that they are engaging in a cultural activity that motivates people to attend even though they make a beeline for the bars. If the galleries and related businesses start closing up at 5 pm on the first Friday, then maybe the crowds will start to dissipate or end up migrating to the third Friday. If the galleries have the resources to open on First Fridays, it might be good in the long run training people to appreciate art through the continual exposure. Even if they aren’t buying now, they may be more open to doing so in the future. There is a proverb that one generation plants the tree and the next enjoys the shade. That is a tough thing to endure though if you have to pay your bills today.

The thing I think will keep third Fridays from being overrun is that it takes more effort to ascertain if the current Friday is the third one in the month than it does to recognize it is the first one. That may be the saving grace of the slow art theme of third Friday.

It is rather frustrating to keep hearing stories of artists becoming victims of their own success. You eke out an existence in squalid setting. Gradually things get better to the point where you are recognizing some success. But that means you have a handful of successful years before you are either priced out of your location or the aura of success attracts people who aren’t interested in your products driving away those who are. Is there any place that has been able to strike a balance and maintain the long term success and affordability environment for an arts community that was responsible for sparking a neighborhood revitalization?

Death To Funding Arts Related Acromyns!

by:

Joe Patti

There are a lot of people calling for the end of federal funding of the arts this past week. Only it isn’t coming from politicians or groups opposed to having tax dollars devoted to the arts. It is coming from people within arts disciplines. Last week fellow Inside the Arts blogger Bill Eddins posted an entry calling for the end of the National Endowment of the Arts. Leonard Jacobs at the Clyde Fitch Report expanded on Eddins’ theme. On Friday the NPR show On The Media had an interview with the editor of Reason.com, Nick Gillespie, who suggested ending funding to the Corporation for Public Broadcasting (CPB) as a means of denying politicians a perennial bugbear needing to be slain.

Gillespie’s interview was in reaction to an editorial, Steve Coll wrote in the Washington Post suggesting the big networks like Fox News should be charged more to broadcast and the proceeds directed to the support of the CPB. Coll’s editorial was in response to one that South Carolina Senator Jim DeMint wrote calling for NPR to support itself.

Common to both Eddins and Gillespie was the idea that the funding support to individual arts organizations and broadcasters that trickled down from the NEA and CPB was such a small portion of the total funding, it might be better to lose the money altogether and be free of the recriminations and accusations about how poorly the money was being used. Nevermind that it is only about 42 cents per taxpayer, the perceived rate is so much greater and so ingrained in people consciousness that contradictory evidence finds no purchase.

Some who commented on Eddins’ post point out that the indirect impact of NEA funding actually provides more support than is immediately perceived. State art foundations pass along funding and may actually owe some of their continued existence to NEA funds as states cut back funding in that area more and more. I know that many in my state wonder if our foundation would still be in operation if not for administration of stimulus funding that necessitates it existence.

Gillespie felt that the cut in funding to radio stations wouldn’t impact them that much and they could either thrive without it or might find an increase in funding from other sources. I was a little skeptical at that since I wondered what sources have been holding their dollars back in reaction to federal funding.

For all the resistance part of me feels toward the idea of spurning federal funding, there is another part of me that wonders if the current situation isn’t a little like that faced by 20somethings living with their parents after graduating college. The support the parents provide isn’t a whole lot, but they keep complaining about the resources being diverted toward supporting their generally responsible adult children (as opposed to those slacker kids). Most of those bills they would have to pay even if you weren’t living in the house but they keep talk as if it is all due to you! At the same time, moving out and giving up that little support is pretty scary first step to take.

For some arts organizations, not receiving federal monies may actually open their programming up and embolden them. All that money flying around during political campaigns may end up directed their way as political action groups hire groups to paint murals and organize flash mobs to either support their view or embarrass the opposition. Though most arts groups’ aversion to being perceived as selling out might preclude that sort of thing. And of course this is based on the assumption that the dearth of funding from both public and private sources will make non profit status and the attendant restrictions on political activities less desirable to have.

Even if they aren’t engaged in politicking, knowing that they won’t have to rein in controversy could result in more experimental fare once people move past the “we can’t do that” mindset that the culture wars surrounding NEA funding has created. As the song says, “freedom’s just another word for nothing left to lose.” That might result in the creation of things that will really scandalize politicians, only they won’t have a carrot or stick to wield any longer.

While money does equal access and control in the world of politics, it tends to be a little divisive in the arts scene -> who has it – who doesn’t = who has sold out – who does “pure art.” Maybe if there was more money available on a dependable basis this wouldn’t be the view. But right now the best thing to do to keep the arts community divided may be to give out a lot of money. Because in an environment where there is no money, the seeds of a unified vision seem to be sprouting.