Info You Can Use: Know Your Funding Rights

by:

Joe Patti

An event of note to be aware of is that last month the federal Office of Management and Budget said “that when governments hire nonprofits to provide services, those nonprofits legitimately need to incur and be paid for their “indirect costs”—which is government-speak for overhead and administrative expenses.”

According to Chronicle of Philanthropy, non-profits should receive at least 10%, if not more, “of the direct costs of their grant or contract to pay indirect costs.”

Given that non-profits are frequently anxious about revealing their true overhead costs for fear of having it count against them with donors and foundations, this mandate is seen as a victory because it starts to institutionalize the practice of covering those costs.

However, according to the Chronicle of Philanthropy story, the enforcement of these rules may depend on the self-advocacy of non-profits.

While the new rules are now the law of the land, the indirect-cost regulations must be interpreted and applied consistently by tens of thousands of individuals in fragmented departments, agencies, and offices at “pass through” entities (usually state and local governments and large nonprofits) that use federal funds to hire nonprofits to provide services in their communities.

The regulations are already in effect, but the multiple levels and layers of government have not learned about or communicated the existence of the new rules, let alone provided consistent training programs, to employees scattered across these pass-through entities.

Making matters worse, there has been no transition time for the thousands of jurisdictions to purge and modernize their outdated statutes and regulations to enable them to comply with the new federal requirements.
[…]

Unless we all take concerted action, it’s quite possible that we will slide back to what had been the status quo: inconsistencies in our nation’s archaic, patchwork government-nonprofit grants and contract “system” that have left nonprofits at the mercy of often contradictory policies and practices of disconnected federal, state, and local government departments, agencies, offices, and employees. Arbitrary, unjustifiable caps on indirect costs could remain routine.

The author of the piece, Tim Delaney, chief executive of the National Council of Nonprofits, encourages foundations to lend a hand with this advocacy. He points out that often grant makers end up filling the indirect cost gap that government entities may refuse to cover. Correct practices could mean a savings for grant makers who would no longer need to provide this assistance.

As an arts organization, you may be thinking that you don’t have any government contracts so this doesn’t apply to you. However, notice that these rules apply to pass through agencies which, depending on the program, may include arts councils and other organizations receiving funding from places like the National Endowment for the Arts.

The Council of Non-Profits has put together a guide to help people know their rights and advocate for them. It presents different scenarios where you may be told these new rules don’t apply and how to respond to them.

Two points brought up in the guide that lead me to think these rules apply to state and regional arts councils: One- it doesn’t matter whether it is called a contract or grant or any other term, the rules are based on the substance of the transaction.

Two – Sub-recipient non-profits who are required to acknowledge part of the funding is received from the federal government are covered under these rules.

If you have been required to acknowledge part of the funding is received from the NEA, these new rules are applicable to that program unless specifically excluded by by legislation.

If You Got The Data, She Wants To Study It

by:

Joe Patti

Reader Heather Grob responded to my recent post asking about more information regarding propensity score matching to learn more about arts audiences.

Heather, an associate professor in the St. Martin’s University School of Business writes,

Hi Joe,

Yes, I have used propensity score matching in a different venue than the arts. It was in a study looking at workers’ compensation pension outcomes. When you have a subject where there are selection biases (for example, that the more educated are more likely to participate in the arts) then propensity scoring can help to control for the outcome to more precisely estimate the effect on outcomes.

I think you explained it pretty well to a lay audience. I imagine it would be useful to use when you have a lot of data on attendees and non-attendees (or season ticket holders and not is more likely).

If anyone has data they want to “play” with, let me know. I’m interested in doing more studies on socioeconomic phenomena in the arts. –Heather

I wasn’t sure anyone would respond to the post with more information much less be interested in getting their hands on data to study. If someone is interested in learning a bit more about their audience and potentially their community, if the data is available, you may want to follow up with Heather.

The Good, The Bad of The Ugly Glasses

by:

Joe Patti

Even though most news outlets have only been carrying the announcement that Google was stopping sales of Google Glass in the last few days, for some reason I have known about it for a month or two now.

When I did originally hear about the decision to review and revamp the glasses in light of problems and negative perceptions, I had a moment of schadenfreude because I bristle at the intrusiveness of Google Glass on privacy. I was pleased by the news that I wouldn’t have to contend with people either engaging with me in ways I didn’t approve of or using the technology to further disengage from their surroundings.

This being said, I will concede that wearable technology is inevitable and something the non-profit performing arts community needs to develop policies and procedures for.

There are definite benefits of this type of technology for arts organizations. Arts and Management Technology Laboratory at Carnegie Mellon University put out a paper this past summer about the positive and negative implications of wearable technology in a performing arts environment.

Some applications mentioned in the paper, “Performing Arts in the Wearable Age,” are fairly obvious because they take what is already happening with handheld devices and tablet computers and move them to platforms like Google Glass. Among these are: allowing musicians to get rid of music stands and have score scroll past their eyes; providing background information about the show and performer being looked at to audience members and replacing supertitles with your choice of language translation before your eyes.

The authors also talk about providing point of view experiences to audience members, something I imagined in one of my first blog posts. Imagine being able to see what the actor sees both on stage and backstage. Even more, imagine being able to “perform” opposite your favorite actor and be kissed, slapped, slain, etc by them.

What I hadn’t envisioned was its use as an evaluation tool, allowing students to see themselves perform through the eyes of their instructors or see what their instructors see when they themselves perform.

What never occurred to me was how useful this sort of technology might be for interactions at front of house. The authors mention better fidelity of communication between different staff members versus walkie talkies. They also note that individuals would be able to provide service to customers without directing them to a house manager or the box office because information would be fed directly to their devices.

“Virgin Atlantic has been testing Glass in certain airport terminals since February 2014. Once the customer identifies themselves, gate agents and staf members can aces flight information, seat details, and personal preferences. The result is streamlined, personalized service: the customer receives individualized information suited to her particular journey and needs, with the airline employee processing check-in more quickly and efficiently.”

As soon as I read that, I envisioned a situation where a volunteer usher could do a much more effective job if a glance at a ticket immediately scanned the people as attending and coached the volunteer with directions either visually or with an in ear audio cue. (i.e. Ah, you are through the even side door on the right, go through the door marked row L-O, your seats are about 2/3 of the way toward the center.”

Not only that, I imagined late seating could be facilitated if the customer was wearing something like Google Glass. All they would need to do is glance at their tickets before they entered the theater and the glasses would cause their seats and the one at the end of the correct row to “glow” when they looked at them. Ushers wouldn’t need to try to point them out in the dark with a flash light and it would be apparent someone else was sitting in the seats before the late comers started edging down the row.

Now you may be thinking that your ushers are a bit older and might be uncomfortable with handheld scanners without trying to access information through worn technology. My thought is that each unit would be programmed for a certain task so that the ticket ripper would only check people in and get directional cues while someone else’s accessory would perform more tasks. That way you assign people with different comfort levels to specific roles or specific devices.

While this is all exciting, issues of intellectual property and privacy would need to be resolved and the authors of “Performing Arts in the Wearable Age,” acknowledge many of them. The tricky thing, of course, is that nearly every piece of technology ends up getting used in a manner the creators never envisioned so trying to anticipate all the implications for the performing arts are nearly impossible.

If a performer is transmitting what they see as they walk backstage, then obviously greater operating discipline needs to be instilled backstage (language and state of undress being only some of the issues.) But what happens when someone hacks into a piece of wearable technology that everyone thinks is off and the result appears on tabloid websites?

If They Don’t Know J.F.K. & M.L.K, Why Would They Know Y.O.U.?

by:

Joe Patti

You want quick proof that the performance you are doing probably has no relevance to those in their 20s and 30s? Hand them a famous historical speech and have them analyze it.

Last semester I was teaching a public speaking class and had to do a little work explaining why certain references were important. Students missed the significance of

“I know of no town, no city, that has been besieged for 18 years that still lives with the vitality and the force, and the hope, and the determination of the city of West Berlin.”

supporting the theme of freedom in JFK’s “Ich bin ein Berliner” speech. Living in a time after the wall fell, they were unaware of the geography that isolated West Berlin within East Germany, much less the politics and history that necessitated the Berlin Airlift.

Similarly, there was a lack of awareness about the foreboding element in the final lines of Martin Luther King’s “I Have Been To the Mountaintop,” where he speaks about not being afraid of the threats against him the night before he is killed. (The date of the speech aside, there was a slight lack of awareness he was slain.)

So what chance does your performance have if people aren’t aware of the relevant underpinning in the speeches of a guy who has his own national holiday?

You can bemoan the lack of knowledge and blame the state of the education system today. But the fact remains, this is the audience base that needs to be communicated with and related to.

The fact also is that you don’t need to know about these things to be aware that you are reading/watching a powerful and significant moment unfold. In the same way, you don’t need to be aware of all the original references and political undercurrents which infuse Shakespearean plays to enjoy them.

The question of relevance for the audience member has never really been so much about “Am I watching something significant?” as “Why should I make the decision to direct my attention to this?” Most of those students never really considered these speeches because there was no reason to do so. (Admittedly, I also learned a fair bit more for having taught the speeches.)

Barry Hessenius points this out in his recent review of the latest reports from the National Endowment for the Arts:

“It wasn’t that people were looking for ‘transformative’ experiences and couldn’t find any; it wasn’t because there was any perceived dearth of ‘excellence’, it wasn’t because there wasn’t any opportunity or choice — it was instead mundane issues.”

These mundane issues are lack of time, inconvenience, price and no one to go with.